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Today I want to talk about an unusual feature of the UK labour market. It is cooling, but mainly through less hiring rather than more firing. The economy has been more resilient to the recent energy cost shock than expected. Activity has held up better than anticipated, unemployment has risen only gradually, and redundancies remain relatively low. That may sound like good news. In lots of important ways, it is. But a low-hire, low-fire labour market creates its own problems. It protects those already in work while making it much harder for those trying to get in or move on. This matters because the current slowdown ... ( full story )
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