“On the face of it, predictions of a continued drop in unemployment should be welcomed, but the speed of the anticipated fall will be the big test, not least because of its implications for interest rates. Much will depend on how confident employers feel as they reap the benefits of wider initiatives, such as the business rate cuts outlined today.
“Britain is also still suffering from a skills shortage and although the Chancellor has gone some way to address through new training initiatives, including apprenticeships. The lack of appropriately skilled staff could fuel salary inflation as employers struggle to find suitably qualified recruits able that can hit the ground running.
“At the same time, our own research suggests that there remain pockets of the country which are lagging behind others when it comes to job creation. Unless a balance is found we could also face the opposite problem of unequal distribution of jobs hindering efforts in some regions to offer workers a living wage.”
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