Today’s data from the UK labour market continued to show further signs of recovery, with the number of payroll employees showing another monthly increase, up 207,000 to a record 29.2 million in September 2021 and managing to return to pre-pandemic (Feb 2020) levels. However, the number of job vacancies in July to September 2021 reached a record high of 1,102,000, leading to the second consecutive month that the three-month average has risen over one million. While overall today’s data showed encouraging signs from the economy, it will be essential to resolve the issues of supply shortages, rising fuel prices and labour shortages to ensure the continuation of the recovery moving forward.
Energy prices remain under pressure amid increased demand
The situation on the energy markets remains precarious as prices continue to rise and as shortages continue to be an issue for most economies which are now contending with an increase in demand. Despite production levels rising slightly, demand has been shifting from gas to oil to compensate for the recent price spikes and global shortages which have disrupted markets. Brent and WTI are both attempting to extend their upward move after managing to break through the previous multi year high yesterday and despite pulling back slightly, prices remain under pressure. While a noticeable increase in production may be necessary to stabilize and cool off the energy market, it seems unlikely that will be the case for the time being, especially considering the most recent OPEC meeting where the group opted to leave its policy unchanged.
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