A telling signal that an economy is on the road to recovery is reflected in the amount of job vacancies with in the labour market. These two articles highlight the fact that although confidence is still bruised it is strengthening. They also point out that interest rates may rise as the BOE has warned previously. As the economy moves towards the inelastic part of the AS curve workers are in more of a position to demand higher wage rates. This is inflationary and as unemployment approaches 7% we may see that increase being implemented. Remind yourselves of the chart in the sidebar on the right of the page.