Bank urged to leave interest rates on hold
Britain is experiencing a "two-speed" labour market, according to the latest research from the Recruitment and Employment Confederation and KPMG.
February's REC/KPMG "Report on Jobs" suggests that, while there has been a strong rise in permanent and temporary staff placements in the private sector, especially in IT, engineering and construction, the public sector is shedding jobs further – with nursing, medical and care recruitment "significantly" declining from a year ago.
In more encouraging news for policymakers, however, the REC confirms that wage inflation "remained subdued", suggesting that, as yet, imported inflation and a rise in expectations for future inflation has not fed through into wage rises. The rate of inflation of permanent staff salaries eased to a three-month low in February and remained below long-run averages.
More caution came in PricewaterhouseCoopers' new forecasts, which suggest that the probability of a "double dip" has risen. The accountants say that "underlying domestic inflationary pressures do not appear to be a major concern at present given continued subdued earnings growth. This should allow the Bank of England to avoid rapid rises in base rates, although in our main scenario we expect them to start raising rates gradually later in 2011 and through 2012."
The Bank's Monetary Policy Committee is expected to leave rates on hold tomorrow.
The Office for Budget Responsibility's November 2010 projection for GDP growth of 2.1 per cent in 2011, says PwC, "appears much more reasonable" than the pre-election Treasury forecast of 3 to 3.5 per cent growth in 2011, but is still somewhat above their own figure of 1.2 per cent. House prices have dipped since mid-2010 and "look likely to remain subdued for some time to come".
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Striker's four-month ban for biting an opponent expires on Friday
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...