YARDSTICK INDICATOR
Inflation
The Consumer Prices Index (CPI) increased to 4.4% in July, up from 3.8% in June, according to the latest figures from the Office for National Statistics. This is the biggest monthly change in the CPI rate since records began. The biggest contributors to the increase were rising food costs (up 13.7% on the year) and higher fuel prices. The Retail Prices Index - considered to be a more accurate measure of inflation, and often used in pay negotiations - rose to 5% in July, up from 4.6% in June.
Employment
The number of people in employment for the three months to June was 29.56 million, up 20,000 from the three months to March. However, the number of unemployed people increased by 60,000 over the same period to 1.67 million, bringing the unemployment rate up to 5.4%. This is an increase of 0.2 on the previous quarter. The number of people claiming unemployment benefit also increased to 864,700, up 20,100 compared with the previous month.
Online recruitment
Online recruitment activity in the UK decreased for the fourth time in five months as the Monster Employment Index fell to 174 in July, following a four-point drop in June. Online hiring in the legal sector experienced the steepest decline, falling by 45 points last month. However, demand rose significantly in hospitality and tourism, and opportunities in healthcare and social work also increased. The Monster Employment Index is a monthly analysis of a selection of UK jobs boards.
Job creation
Just over 46,000 new jobs were created across the UK's 21 key industries in July 2008 - an increase of 67% compared with July 2007. The public sector and defence were the highest performers in terms of actual jobs created. The retail and wholesale sector also performed well. The scores are calculated by comparing the number of jobs created within UK industrial sectors each month with the previous year.
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Wages
The rate of average starting salaries awarded to successful candidates placed in permanent jobs fell from 54.1 in June to 50.8 in July, according to the latest Report on Jobs by the Recruitment and Employment Confederation and professional services firm KPMG. The survey is based on a scale where 50 means no change. Hourly rates of pay for temporary/contract staff also fell from 52.4 in June, to 51.1 in July.
Confidence
Manufacturers have become more pessimistic about the business environment in the wake of the summer's credit crunch, according to the CBI's latest quarterly industrial trends survey. Levels of optimism fell to -13% in the three months to October, the sharpest decline in sentiment since January 2006 (-14%). Export order volumes have held up well, with a balance of 6% of firms reporting growth, although export demand is expected to stabilise over the next quarter.
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