The governor of the Bank of England has said there are signs that labour market tightness is loosening - but warned interest rates could still be increased further to curb inflation.
Andrew Bailey made the comments as he described the UK's outlook as"looking a bit brighter" due to falling energy prices and"greater resilience in the economy than expected" during a speech to the British Chambers of Commerce's annual conference on Wednesday."There has been some recovery in labour market participation, especially amongst younger workers, and the number of vacancies has come down from very high levels.
"The ratio of the number of vacancies to the number of unemployed, a key measure of labour market tightness, has fallen as a result.", up from 3.8% in February and higher than expected.