UK: momentum won’t survive Covid-19
- The labour market report revealed a range of robust signs, including surprisingly strong employment growth, record-high participation, and a further rebound in job vacancies. However, such strength is unlikely to survive Covid-19.- Past momentum should still carry GDP back to quarterly growth in Q1, but the monthly rate should fall in March and beyond, weighing on employment and hours too. An unusual self-inflicted recession looks increasingly likely to be beginning.
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