Weekly Economic Briefing - Global Overview

One of the few bright spots in the global economy over recent years has been a relatively broadbased improvement in labour markets. Between the end of 2014 and 2016 unemployment rates fell in 31 of the 39 advanced economies in the IMF economic outlook database. Signs of an ongoing acceleration in global growth bode well for further progress.

Data last week showed that the US economy continues to create new jobs at a decent clip, helping bring unemployment rates even lower. Eurozone unemployment has also declined steadily over recent months and survey data suggest that firms’ hiring plans have rocketed to a nine-year high. In Japan, the unemployment rate has been stable at low levels of late, although rising participation suggests that job creation is pulling workers into the labour market.

The UK bucks the trend slightly, with employment growth slower after the EU referendum. Data issues always make it hard to monitor labour-market performance in emerging markets. However, the composite Purchasing Managers’ Index suggests that job creation is running at a three-year high across this region.