Bank of England deputy governor Lombardelli has warned that the UK's "low-hire, low-fire" labour market is hurting young people trying to start their careers. The description points to a market where employers are reluctant to recruit new staff but are also not making large numbers of redundancies, leaving fewer openings for those entering work for the first time.
The concern is that while a low level of layoffs may look like stability for existing workers, it does little to create new jobs. For young people leaving education, weak hiring means fewer entry-level vacancies and a harder route into the labour market. The warning reflects a wider worry among policymakers about how current conditions are affecting different groups of workers, with young people among those most exposed to a slowdown in recruitment.
The remarks come as the Bank of England continues to monitor the economy and the jobs market as part of its wider assessment of conditions in the UK. Lombardelli's comments focus on the structure of the labour market rather than on a sudden shock, describing a situation in which movement in and out of jobs has slowed on both sides. The point is that the balance between hiring and firing has settled at a low level, and that the slowdown is felt most sharply by those with the least experience.
Elsewhere in the same live coverage, a separate story concerned the chipmaker Nvidia, which has been sued by shareholders over the alleged affair of its chief executive, Jensen Huang. Coverage links the alleged affair partner to suspected Chinese spying. The shareholder suit centres on claims about undisclosed material information, including matters relating to China and export controls. Lawyers would examine what Nvidia and its board knew, and when they knew it.
Commentary on the case has drawn a distinction between reputational controversy and claims that can be proven in court. The affair has been framed in the United States as a possible national security risk, and commentators have speculated that Huang could be pushed out of the company. Any such outcome would depend on how the board responds and what the shareholder claims ultimately establish.
The live blog also carried remarks from Federal Reserve governor Christopher Waller, who backs a 25 basis point rate hike. Waller's decision is due to be taken at the December Federal Open Market Committee meeting. He said he would back a hike even if inflation showed an improvement similar to that seen in the September data, and he had hoped for a better inflation reading over that period. His position signals that he sees the case for tighter policy as holding even under a more favourable inflation outlook.
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