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Brexit Jobs Boom Has a Flip Side That's Holding the Economy Back

  • Record level of employment being offset by an investment slump
  • Risk of a turnaround in labor market is rising as Brexit nears
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U.K. Data Doesn’t Help BOE With Brexit Uncertainty, JPM's Bell Says

Booming employment, a rare bright spot for the British economy, also has a dark side.

The country’s record-breaking job creation shown in Tuesday’s data may be coming at the cost of investment, which will hurt in the longer term. The idea is that firms are hiring people rather than buying new machinery or software because it will be easy to let them go if they need to change course.