"Unemployment (claimant count basis) fell by a further 20,000 in October to a level of 931.7 thousand and a rate of 2.7%. This is the lowest level since August 2008 and lower than the average level achieved in 2006.
"Is this significant? Of course. Spare capacity in the labour market is evaporating. Recruitment pressures are increasing. Earnings increased by 1.4% in September compared to the single figure growth in the prior month. Private sector pay is increasing at a faster rate (2.3%) boosted by pay growth in manufacturing and construction. 400,000 have left the register over the past year. On current trends, Job Centres will be closing in the Summer of 2017, there will be no one looking for work!
"The wider LFS data confirmed the positive trend in employment, as the number fell to 1,959 thousand out of work and a rate of just 6%. Despite the strong trends in the labour market, the inflation outlook remains subdued, flattered by slow world trade growth, weak world trade prices low commodity costs and a short term collapse in the oil price.
"A spectre is now haunting the MPC. It is the spectre of high economic growth with low inflation. The textbooks will have to be rewritten along with a letter from the Governor to the Chancellor of the Exchequer as inflation is expected to fall below 1%. "