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UK Employment At Record High

UK Employment At Record High

Despite the uncertainty revolving around Brexit, the UK employment rate remained at a record high and the jobless rate was at its lowest level since late 1974, reflecting strong labor market conditions, the Office for National Statistics reported Tuesday.

In the three months to July, the ILO jobless rate remained unchanged on quarter, at 3.8 percent, but slightly below the expected rate of 3.9 percent.

The employment rate came in at 76.1 percent in the three months to July, the joint-highest on record. The number of employed increased by 31,000 from the previous quarter.

Average earnings including bonus increased 4 percent from last year, compared to the expected increase of 3.7 percent. Excluding bonus, earnings gained 3.8 percent.

In August, the claimant count rate rose slightly to 3.3 percent from 3.2 percent in July. The number of people claiming jobseekers’ allowances increased by 28,200 from the previous month.

Data showed that job vacancies decreased by 23,000 from the previous quarter to 812,000 in the June to August period.

The labor market still looks set to provide solid support to the consumer sector over the next few years, Ruth Gregory, an economist at Capital Economics, said.

Gregory noted that against the background of stagnant productivity but rising wage growth, the pick-up in inflationary pressures will probably prevent the Bank of England from becoming too dovish despite the weakening global backdrop.

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