Underemployment's impact on spare capacity smaller than thought, says Weale
MPC member says extra 1% employment would have diminishing productivity returns
The likely impact of underemployment on spare capacity in the UK's economy is "smaller than might appear at first sight," Martin Weale, a member of the Bank of England's Monetary Policy Committee, said today in a speech.
Setting out some new analysis into slack in the labour market, Weale said the change in effective employment is "likely to be less than the crude reduction in unemployment might indicate".
Weale also said there was scope for employment to rise by a further 1% without increasing
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