U.K. Jobless Rate Could Fall to 7% in 2014,

U.K. Jobless Rate Could Fall to 7% in 2014,

"This time last year we were talking about the UK's 'jobs enigma'. Since then, labor market performance has continued to exceed expectations, turning the UK labor market into a 'jobs machine'" - Mark Beatson, CIPD chief economist

The Bank of England's targeted unemployment rate at 7% might be reached in 2014, the Chartered Institute of Personnel and Development said. The milestone of 30 million people at work was reached in 2013 and there is a strong probability that employment will increase by more than forecast of 300,000 during 2014, and even by as much as 500,000, pushing the U.K.'s headline jobless rate below the central bank's threshold of 7%, and thus potentially triggering a revision of the current monetary policy stance earlier then expected. The U.K. unemployment rate has become one of the most important sets of macroeconomic data, having been closely monitored by the BoE since the policymakers decided in early August to tie its monetary policy to jobless rate. Nevertheless, policy makers have been reiterating that if unemployment rate reaches the target or even falls below, it should not be viewed as immediate impulse for interest rate hike, but only as a milestone to begin reviewing the current monetary stance.