UK wages increase, while employment growth wanes
British wages in the three months to April outpaced forecasts, while employment growth slows, according to recent pay data.
UK pay outpaced forecasts in the three months to April, with new hire rates slowing, helping to keep unemployment rates at its lowest level since 1975, according to data from the Office of National Statistics (ONS) on Tuesday.
The data showed that total earnings, including bonuses, increased by 3.1% before adjusting for inflation, compared with the same period a year prior.
‘Overall, the labour market continues to be strong,’ ONS statistician Matt Hughes said.
UK employment remains highest on record
The UK employment rate was estimated at 76.1%, higher than a year earlier (75.6%) and the joint-highest on record.
The UK unemployment rate was estimated at 3.8%; it has not been lower since October to December 1974.
For February to April 2019, an estimated 1.30 million people were unemployed, 112,000 fewer than a year earlier and 857,000 fewer than five years earlier.
The UK labour market remains strong despite Brexit turmoil
The ONS data depicts a UK labour market that has remained strong in the face of political and economic uncertainty.
British wage growth and employment rates have remained relatively robust since the UK voted to leave the EU back in June 2016.
Official data showed that the UK economy shrank by 0.4% in April, its biggest monthly drop since 2016.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
