With unemployment at its lowest level for 20 years there are concerns in some quarters that employers finding it hard to recruit people will bid up the price of labour and set inflation rising.

Third quarter construction output figures from the DETR show value rose 1Ω% compared with the previous quarter while volume of work was 1Ω% lower, which reflects a significant increase in labour costs.

One quarter\'s figures do not make a trend. Neither are they necessarily accurate as they will continue to be revised for some time yet. Nevertheless, they warrant some attention.

The total volume of construction output for the year to the end of the third quarter was up 2Ω% on the same period a year earlier and the volume of new work was 4% higher.