Bank of England cautious on jobs market

Despite signs that the UK economy may well have recovered quicker than many had expected, and unemployment has not risen as quickly as many had thought, the Bank of England is still relatively concerned about the short-term prospects for the UK employment market. There is a growing feeling that if the UK economy does not push through with further growth in the short to medium term then we could see pressure on prices which would then translate into pressure on businesses.

While many people have applauded the UK government and its various strategies over the last two years, which have led to the recent recovery in the UK economy, there is concern that this is not job done as yet and more time and investment is required. This comes at a time when the UK government is desperate to portray an economy which is firmly back into growth mode due in the main to decisions taken by Gordon Brown and his cabinet.

The latest quarterly bulletin from the Bank of England is a blow for the UK government as it does highlight the potential for further difficulties in the short to medium term. Are we literally in the middle of a short-term pickup in the UK economy to be followed by higher taxes, falling property prices and a stalling of the economic recovery?