Net inward migration was a key driver of these trends: between 2015 and 2019 net migration – many of whom were of working age – totalled some 110 thousand people, a large number in the context of an increase in overall employment of 263 thousand over the same period. In 2018, employment returned to pre-financial crisis levels, albeit with a very different composition.
Notably, a much lower concentration in construction. By the end of 2019, wage growth was beginning to pick up and concerns over the risk of ‘overheating dynamics’ were emerging in the context of a tightening labour market and strong domestic demand.13 I will not dwell on the labour market impact of the pandemic itself.