This means that all of the job losses recorded during the crisis have been recovered. Additionally, the unemployment rate is now at its lowest level for around nine years and continues to decline, despite an increase in labour force participation. Employment growth, together with the gradual increase in employee compensation, is supporting households’ disposable income and underpinning solid consumption dynamics.
Robust consumer spending is being driven by buoyant sentiment, favourable bank lending conditions and the notable progress achieved with respect to deleveraging.