Consumption is much more conducive to jobs than exports, reflecting the higher labour-intensity of services, which are the bulk of consumers’ expenditure. In contrast, exports have a higher manufacturing content and are less labour intensive.3 This is one reason why the labour market recovery was not affected by the contraction in world trade in 2015-16.
In fact, the continued strength of consumption may explain why firms are still hiring even as growth slows, with permanent contracts accounting for the vast majority of the increase in employment this year. But clearly this could change if firms start to see the slowdown as more persistent.