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UK unemployment falls - "Four months on from Brexit stumble, jobs market has regained its footing" - reaction from Indeed

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

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“Four months on from its Brexit stumble, the UK jobs market has regained its footing and is keeping up a brisk pace - even if it’s starting to fatigue.

“Unemployment is edging lower as new jobs are being created. Some hiring managers who held back on recruitment while the post-referendum dust settled have given up trying to second guess the Brexit saga, and are once again taking on staff - even if the future outlook remains uncertain.

“In the very short term, hiring activity on the front line is picking up, and the latest Indeed Industry Employment Trends report shows that in October the number of vacancies increased in all 13 recruitment sectors - even if it’s down on last year’s level.

“This surge in activity is more likely to be a release of previously latent hiring demand than an expression of long-term business confidence, and the resilience is tempered by early signs of a slowdown.

“While jobseekers are reaping the rewards of a steady growth in employment, the outlook for their earning power is less rosy. Though consumer inflation dipped a touch in October, rising raw material costs are likely to put pressure on real wages in coming months.

“Producer price inflation will feed into higher high street prices sooner or later, and employers who are being squeezed by rising input costs are unlikely to offer substantial pay rises.

“Britain’s labour market has steadied itself remarkably well since the referendum earthquake. But as this month’s High Court judgment showed, the process of Brexit is likely to be long and arduous and employer uncertainty will remain an important factor.”