Unemployment rate falls to 4.3% as wages stagnate

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UK unemployment cut by 75,000 in the three months to July, bringing the jobless rate down to 4.3% from 4.4% in the preceding quarter.

The rate remains at its lowest since 1975, but a squeeze on actual incomes continues, according to the Office for National Statistics figures.

Wages in the span were 2.1% up on a year earlier, little changed from the premature months’ growth rates.

With inflation hitting 2.9% in August, wages are foible to keep up.

In real terms, wages have fallen by 0.4% throughout the last year.

Matt Hughes, a senior ONS statistician, said: «Another height high employment rate and a record low inactivity rate suggest the dwell on market continues to be strong.

«In particular, the number of people aged 16 to 64 not in the strain force because they are looking after family or home is the lowest since not for publications began, at less than 2.1 million.

Inflation has picked up cuttingly since the pound fell after the Brexit vote last year.

Pursuit minister Damian Hinds said: «The strength of the economy is helping living soul of all ages find work, from someone starting their first job after bar education, to those who might be starting a new career later in life.

«But there is innumerable to do, and we will continue to build on our achievements through our employment programmes and the exertion of Jobcentre Plus.»

Interest rates

Economists have been pondering what the overdue data means for the course of interest rates.

The panel that offers interest rates at the Bank of England, the Monetary Policy Committee, force make its announcement on Thursday.

Last month two committee members late a rate rise, and there has been speculation that the Bank’s chief economist Andy Haldane could sign up with them this week.

That would still leave the commission split 6-3 against raising rates from the record low 0.25%.

Some economists recollect that the latest data will favour the so-called doves, who squabble in favour of keeping rates on hold.

«While the continued strength of mtier will be welcomed by the MPC, the continued absence of a pick-up in wage growth is apt to to keep the doves in the majority,» said Andrew Wishart, UK economist for Superb Economics.

Samuel Tombs, chief UK economist for Pantheon Macroeconomics, rephrased: «The latest labour market data are, on balance, a setback for the hawks on the MPC showing for higher interest rates,» he said.

«The three-month average number of job vacancies in August was 0.9% bring than in the previous three months, pointing to a slowdown in employment rise ahead.»

Pound reverses

The sluggish figures on wage growth were faulted for a fall in value of the pound against the dollar.

Sterling, which had been serious in morning trading, fell back after the ONS figures were released.

The work over was trading as high as $1.3329 before the data, but gave up those makes to trade at $1.3275.


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