The impact of higher employment on wages

Most people would agree that a higher employment rate is positive news. But with more people in work, there will be less spare capacity in the employment market. This will inevitably lead to upward pressure on wages as employers compete for dwindling numbers of potential applicants.

Consumer confidence has rebounded after three months of steep decline due to a rise in positivity toward the jobs market, new survey figures reveal.

The consumer confidence index published this morning by Lloyds Bank today hit a score of 158, up five points from October. The index, compiled from a survey of just over 2,000 people, hit a post-recession peak in June before coming off the boil.

Job security and employment situation helped drive the rebound, Lloyds Bank said. The survey data coincide with the recent release of official figures that show the employment rate in the UK has hit its highest level since 1971.”