Stay informed about free updates
Simply register Employment in the UK Myft Digest – delivered directly to your Inbox.
Wage growth in the UK remained strong in three months until January, although it was still slow hiring, according to official data reported by economists to strengthen the case of England to maintain interest rates today.
The annual growth of average weekly earnings, with the exception of bonuses, is held at 5.9 %in three months to January. This character was in line with the expectations of economists.
Including bonuses, wage growth in the period slightly dropped to 5.8 %, from 6.1 % in three months to December.
Independent data based on tax records showed that wage employment was flat, with a marginal increase of 9,000 employees from December to January, as companies feared slow economic growth, threats of trade wars and immediate increase in taxes and minimum wages.
Employment During the year to January it increased by 0.1 %. However, the provisional data for February showed some signs of confidence that cracked back by an increase of 21,000, ie 0.1 % in the month. The initial estimate of the last month has often been revised in the past.
A combination of strong wage growth and slow hiring is demanding for BOE Currency Policy Committeeexpected to maintain interest rates at 4.5 %when announced its decision later on Thursday.
“With the labor market cooling rather than collapse and wage growth, we doubt that the Bank of England will reduce interest rates from 4.50 %today,” said Ruth Gregory in the consulting capital economy. However, she added, “All this leaves the bank in a complex position.”
After publishing work data, the pound slipped by 0.3 % to $ 1.296.
MPC is afraid that the job market could further deteriorate, but also has become a more pessimistic about the degree at which the British economy can grow without inducing price pressures. Inflation stood 3 % in JanuaryAnd by the middle of the year it is ready to climb higher.
Andrew Bailey, Governor of Boe, said there was a risk last month that raising taxes introduced in the budget could increase prices and hit jobs more than the central bank was originally expected.
However, wage data suggest that employment lasts better than it was designed by business surveys that signaled sharp cuts in personnel cast. The vacancies also remained stable at 816,000 in three months to February, a similar predandemic level.
Thomas Pugh, the economist of the RSM UK audit company, said “although it would be a section that would say that the British labor market was strong, apparently there is no danger” and added that any further cuts would “at least partially depend on the slowdown of salary”.
The main unemployment rate from the ONS, which is less reliable due to problems with the exploration of the workforce that is supported, was also maintained at 4.4 %in three months until January.
The ONS said the employment rate of 75 % increased in quarter and in the year, while economic inactivity was lower to 21.5 %. However, these changes may reflect the improvement of data accuracy rather than recent hiring trends.
