Labour market slack increasing

Nowhere is the lingering damage to the economy caused by the commodity price slump more evident than in the labour market. Unemployment is still rising sharply in the worst-affected regions, while employment gains elsewhere have been concentrated in low paying part-time positions, all contributing to a growing amount of slack in the labour market. Unfortunately, the underlying momentum in the economy remains sluggish and circumstances aren’t likely to improve in 2017, mainly because of a worsening downturn in housing investment.