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Global labour market hints at recovery

Labour markets

​Although there are concerns about how an uncertain political future - with the upcoming presidential election and Brexit - will impact world finances there are signs that economies are faring well.

In the UK itself, there are suggestions that employment is being largely unaffected - or even buoyed - by the decision to leave the EU.

James Reed, chairman of recruitment specialist the Reed Group, said there were 150,000 more jobs posted on the website in the three weeks after the referendum, compared to the same period the year before.

The figures, published in the Mail on Sunday, indicate that companies are not overly concerned about how the economic climate may or may not change once the UK officially leaves the single market.

Mr Reed said the majority (83 per cent) of companies that had been surveyed had no intention of freezing recruitment, despite nearly two-thirds of them reportedly voting to remain in the referendum.

He said: "If a drop in confidence begins to feed through I think we’d be the first to see it. We were the first to see the jobs recovery after the financial crisis because people advertise jobs that only later come through in government statistics."

Elsewhere, the jobs market is looking just as positive. Figures, published in Reuters, show that the services sector in the US is enjoying a record high.

Released by the Institute of Supply Management (ISM), the numbers reveal that activity in the services sector hit an 11-month high in September. This points towards positive economic growth for the country, which could make a Federal Reserve interest rate hike more likely later this year.

After a slow month in August, the ISM said non-manufacturing activity reached 57.1, which is the highest recorded since October 2015. Readings above 50 suggest sector expansion. This is particularly important for the US, as the services sector accounts for two-thirds of its overall economic activity.

In further support of boosting the Federal Reserve interest rate, which would set the new level for banks and credit unions to operate at, the number of Americans filing for unemployment benefits also fell recently.

The figures, published by Reuters, also found that the number of first-time applicants fell to its lowest level since April this year. This suggests that the labour market is stable could point to a confident last quarter for the US economically.

It appears as though the rest of Europe is unaffected by the uncertainty surrounding Brexit. Data from the Economy Ministry showed that German industry is improving, which was above predictions made by economists polled by Reuters.

"All in all the results indicate a presumably restrained increase of production in the industry sector in the third quarter," the Economy Ministry said in a statement.

All of these positive suggestions are backed by reports of global revenues increasing for many international companies.
Earlier this month, EY reported its sixth consecutive year of record growth, including significant activity in developed and emerging markets.

Although these figures point to a prosperous period for individual countries, the data suggests that companies and consumers are not changing their habits too dramatically despite the high level of uncertainty for many economic climates.​