Playing at Dr Jekyll and Mr Hyde: the UK job market

Employment is at record highs, but wage growth has been lower than in any other developed country except Greece, write Rui Costa and Stephen Machin. The UK labour market, at first glance, seems to be playing at Dr Jekyll and Mr Hyde. Employment (in terms of both levels and rates) is at record highs, yet wage growth has been extraordinarily weak. One view is that these are opposite sides of the same coin. Another, more nuanced standpoint is that record employment is hiding a number of serious concerns about the changing composition of work as poor quality jobs, often with little employment protection, have permeated the labour market.