Commenting on the release of labour market statistics, that showed unemployment falling on the quarter to 3.8% in the 3 months to May 2022, Kitty Ussher, Chief Economist at the Institute of Directors, said:
“The labour market remains extremely tight, providing opportunities for households and no let up in the difficulties employers have in recruiting staff. Having said that, there is a suggestion that things might be beginning to settle, with a slowing in the rate of increase in vacancies and the rate of unemployment possibly bottoming out in the most recent data.
“Firms struggling to fill vacancies will also be encouraged by early signs that some of the people that had previously said they did not want a job are now entering the labour market, as shown by the economic inactivity rate falling by 0.4 percentage points on the previous quarter.
“Overall, however, there is nothing in this data that would prevent the Bank of England from continuing to raise rates when it meets in early August.”