The Current Account: Does David Cameron Need a 'Wage Miracle' before the 2015 General Election?

Things are picking up in the UK labour market as the unemployment rate dropped to 6% in the three months to August.

In fact, it's the lowest level since 2008, meaning less than two million people were out of work.

The Office for National Statistics revealed that the UK's employment rate climbed to 73%.

But the research body also said that the country's youth unemployment rate (for 16 to 24-year-olds) was 16% – that means that the youth jobless rate was more than double the total rate.

Nevertheless, some people have dubbed the drop in employment a 'jobs miracle'. But what about wages? What's going on there?

Well, pay packets only grew by 0.9% in the year to August, behind inflation.

It seems the UK government is going to need a 'wage miracle' before the 2015 General Election next may.