On July 13, Business insider posted an article based on Credit Suisse report headlined “’Mayday! Mayday!’ — Britain’s impending recession will kill nearly 500,000 jobs”. Similar predictions by other economists suggested an increase in unemployment post-Brexit, a labour market reaction similar to the financial crisis of 2008.
However, data revealed by the ONS suggested that post-Brexit, employment remained stable. In fact, the number of people in Britain claiming jobless benefits fell in July. The ONS publication in October further revealed that UK employment rate is an all-time high at 74.5 per cent. The most recent figure for November 2016 shows unemployment rate being at 11 years low at 4.8 per cent. The labour market is not showing any signs of a post-Brexit downturn. However, this may be due to the economy being close to full employment level as data shows a decline in wage growth and a decline in employment growth which suggests that the labour market might face troubles in next few years.
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