Job switching proof of economic recovery in the UK
The increase in the number of people switching jobs is proof that the UK economy is recovering, according to Bank of England officials.
Nearly 900,000 people switched jobs between October and December last year, the highest number of people since 2004.
With the number of people moving from one job to another now returning to above pre-crisis levels, the Bank of England has been given the confidence to increase interest rates, with this expected to happen in May.
The surge in workers switching jobs also suggests that people are feeling more confident about taking the risk, with many usually changing their job when they are feeling positive about giving up a secure job role knowing that more work is available if their decision goes wrong. Workers also have the opportunity to increase their income, as new jobs tend to offer a significantly higher salary.
Employment is currently at a record high, whilst unemployment has dropped to a record low of 4.3 per cent. Pay growth is also expected to strengthen, with pay set to overtake the pace of price rises.
Commenting on the increase in the number of people switching jobs, the Bank’s Monetary Policy Committee said: “Job-to-job flow rates had continued to pick up in the fourth quarter and were now back to pre-crisis average levels, with voluntary job-to-job rates slightly above their pre-crisis average.”
The committee also said that vacancies had continued to improve in the three months to February compared with the three months to November.