Inflationary Pressures on UK Job Market Expected to Ease as Health Crisis Eases

The number of people unable to enter the UK job market due to long-term illness has fallen for the first time this year, a further sign that the UK economy is emerging from a “crisis of inactivity”.
While NHS waiting lists remain at record highs, the ONS said on Tuesday that the number of chronically ill people fell by 30,000 in the three months to May compared with their peak in April.
The data suggest that inflationary pressures from the labor market may ease in the coming months.
While wage growth remained above what the Bank of England said was in line with its target, unemployment rose as more people entered the labor force, suggesting upward pressure on wages may have passed its peak.
Charlie McCurdy, an economist at the Resolution Foundation, a British think tank, said: “With the job market returning to pre-epidemic conditions, it is undoubtedly good news that economic inactivity has fallen further.”