U.K. Wages Will Outpace Inflation in 2H: BCC

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March 10 (Bloomberg) –- British Chambers of Commerce Chief Economist David Kern discusses the U.K. unemployment rate, productivity and wages with Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

David kern is here.

The proposal of the u.k. -- puzzle of the u.k. over the last few years.

Is it becoming less of a puzzle?

I think it's a problem and not so much a puzzle.

What is happening in the u.k. is doing the downturn, unemployment went up much more sharply in the u.s. than the u.k. the u.k. has engaged in labor holding.

Many people lost their job and stayed in.

That meant we produce less but more people than otherwise would be the case would be employed.

Clearly, productivity was down.

Wages were down.

In terms of visibility, it was a good thing.

It is better to share the labor.

It cannot go on forever.

It is to increase productivity.

If my focus is right, that would happen.

But not fast enough.

It happens pretty slowly.

Wages are going down in my forecast.

But not very fast.

In the meantime, inflation -- the wages are out raising inflation?

It will be a boom.

The first time and how many years?

That is what makes people feel wealthy are not.

Clearly.

It is good inflation has calmed down.

It was 5% about three years ago.

Now just under 2%. wages and earnings are going up by over 1%. there are other sorts of income.

The payments for protection that is added to -- who would think it would be so significant?

It is significant because consumer spending is an important factor which is good.

We cannot rely on this administration.

When he productivity and more investment and things will move in the right direction.

Would you expect in the bank of italy to do when it comes to the housing market -- what to do you expect the bank of england to do when it comes to the housing market?

At the moment, house prices are rising.

I do not believe is a bauble.

We may be approaching a bauble in some areas.

-- bubble in some areas.

If they do not do it, i hope it will not raise interest rates.

Ip that would be a big mistake.

That we use macro protection tools, which mean attacking areas in the housing market.

Like a bigger percentage of mortgages.

It would cool the market.

Does it get bent or further to run?

I do not think it is a mistake but we have to watch the situation.

I do not share the criticism about housing.

That it was a bad call.

In the u.k., the housing is at the core of the economy.

It is a political part of the feel-good factor.

The houses, they like rising house prices.

I do not think we would've had any economy with the housing market.

When did we see young unemployment rising -- declin ing?

What is the problem for young people?

A very serious problem.

Youth unemployment last year was over one million.

It is now 900,000 last night.

It is much too high.

The trend is going to the right direction.

If my focus is right, it will continue.

This text has been automatically generated. It may not be 100% accurate.

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