There’s no denying that the Bank of England have got to grips with the problem of inflation with a drop of 2% in December, as measured by the Consumer Price Index.   Of course Christmas has a massive effect with retailers scrambling to drop prices earlier this year in a bid to capture you and me spending on average £300 per child on presents, and an extra £1150 per on average household in a single month.    But aside from this, the downward trend would seem to continue and it is the first time that inflation has been below government targets since 2009.

So what does this mean to the UK job market?      

Well in spite of this good news, inflation is still way ahead of earnings growth although economists are predicting that the average household income will be significantly improved by the end of the year, and possibly even overtaking inflation.

This is great news for the jobs market.  The cost of “living” is one thing, but it also has a major effect for UK companies on the cost of “doing business” and when businesses feel the loosening of the financial grip that high inflation has had, then they might well feel a little more comfortable investing in new positions (jobs!) and new enterprises.      Unemployment has fallen to 7.1%, the lowest since to start of the financial crisis in 2008, and is set to continue to fall.   This is of course great news for job hunters as it is a clear indication that UK industry is moving ahead with employment growth.

Let’s just hope that it doesn’t force the hand of the Bank of England when unemployment drops to 7%; their target ahead of potentially raising interest rates.    But for all of us in Recruitment, and for you if you’re looking for a new position, it’s very good news indeed!

Colin Gerrard

Founder and Director 100% IT Recruitment.