The latest official labour market figures contain new record figures for both vacancies and redundancies as they continue their positive trend, with further indications of a tightening labour market. However, although employment is rising and unemployment falling, the level of economic inactivity remains high and on the increase due to long-term sickness and ‘other’ reasons. A key question is whether this presents an element of slackening or tightening in the current labour market picture (see below).