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UK Labour Market figures - reaction from the global job site Indeed

Mariano Mamertino, economist at the global job site, Indeed, comments:

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Indeed

“This second successive fall in unemployment will go some way to allaying the fears stoked by April’s surprise jump in the jobless total.

“But nevertheless Britain’s rate of job creation has slowed badly in 2016. Many employers have delayed hiring for as long as possible in the face of Brexit uncertainty, the costs of introducing the National Living Wage and global economic headwinds.

“The Brexit uncertainty is far from over - and in the event of a Leave victory, it could be just beginning. But with the summer surge now in full swing in seasonally-affected sectors, the jobless total is inching down as employers who had deferred hiring accept that they can wait no longer.

“So while these are positive numbers, there’s every indication that they represent a soft landing rather than a sudden reversal in hiring sentiment.

“It’s a pattern mirrored by the latest edition of Indeed’s UK Industry Employment Trends report, which found in May that job listings increased in 11 out 13 employment sectors - a reversal of the April trend which saw a decline in 10 out of the 13 sectors.

“But with employer sentiment stuck in limbo to a large degree, this modest increase in hiring is likely to be driven by an immediate and pragmatic need for staff rather than any longer term confidence in the economy.”