UK Jobless Rate Remains Unchanged; Wage Growth Cools
(RTTNews) - The UK unemployment rate remained unchanged and wage growth eased in the three months to July period, reflecting the softer labor market conditions, data from the Office for National Statistics revealed Tuesday.
The unemployment rate stood at 4.9 percent in the three months to July, the same rate as in the quarter ended June. The rate was forecast to rise to 5.0 percent.
In the three months to July, average earnings excluding bonus increased 3.5 percent from the last year, unchanged from the preceding period and matched expectations.
Including bonus, earnings rose 3.9 percent, weaker than the 4.2 percent rise in the three months to June. The rate came in line with expectations.
In August, payrolled employees decreased 26,000 from July to 30.2 million. The number of vacancies fell 8,000 to 702,000 in the June to August period.
"Today's jobs report is yet another reminder that the UK economy is far less susceptible to another long-lasting inflation wave," ING economist James Smith said. Although a rate hike can't be ruled out if energy prices stay high, the Bank of England is likely to keep policy on hold into next year, he noted. The BoE is set to announce its next monetary policy decision on September 17. Smith expects another 6-3 vote to keep the bank rate unchanged at 3.75 percent.
"Unemployment remained at 4.9%, in the three months to July, a clear indication of the continued stress businesses are feeling as they navigate a world of increasing costs," British Chambers of Commerce Research and Economics Analyst Caterina Batog said.
"Another rise in youth unemployment is particularly concerning," added Batog.
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