|
Economy
|
UK Unemployment Falls Unexpectedly as Wage Growth Slows
2024-08-13 09:00:08
Economy
Employment
Business

UK Unemployment Falls Unexpectedly as Wage Growth Slows

UK unemployment rate unexpectedly falls to 4.2% in July, with employment rising strongly. However, wage growth cools to a two-year low at 5.4%.

The Bank of England expresses concern over persistent wage pressures. The Office for National Statistics delays the release of new survey figures.

The decrease in unemployment is contrary to economist forecasts and Reuters predictions. The decline in vacancies suggests a return to pre-pandemic job market conditions.

The finance and business services sector sees the highest wage growth at 6.2%, while the construction sector has the lowest at 3.5%. Chancellor Rachel Reeves plans to deliver her first budget on October 30th.

Data is distorted by one-off NHS bonus payments in June 2023. The workforce is described as older, remote, and mentally challenged. Analysts are divided on the impact on interest rates, with some expecting further cuts.

Related news on that topic:

Australia's Wages Rise Slowest in a Year

Australian wages rose 0.8% in Q2, the slowest in a year and below market forecast. Annual growth stands at 4.1%, with the private sector at its lowest since 2021. The RBA policy remains steady at 4.35%, expecting inflation to return to 2-3% by 2025. Oxford Economics notes that wage growth is still too strong for a quick inflation return. However, incomes are boosted by major tax cuts implemented in July. The jobless rate ticked up and productivity growth is lacking. Underlying inflation stood at 3.9% last quarter. Some economists are anticipating a rate cut early next year, while markets are now wagering on easing by year-end.

Australia's Wage Growth Outpaces Inflation: A Positive Outlook

Australian wages grew 4.1% annually, surpassing the 3.8% inflation rate. In Q2, private sector wages increased by 0.7% and public sector wages by 0.9%. Two-thirds of workers experienced over 3% annual wage growth. This marks the first time in three years that wage growth has outpaced inflation, as reported by the ABS Wage Price Index and CPI data. Public sector wages rose at the second-fastest pace in 14 years, with synchronized pay raises benefiting public service employees. Australian business conditions improved in July, indicating a positive economic outlook with easing cost pressures. Consumer sentiment brightened in August as tax cuts and reduced rate fears boosted family finances.

Read 24 more recent news on this topic

The press radar on this topic:

The Guardian
13. August 2024 um 15:40

UK unemployment rate drops unexpectedly, but wage growth hits two-year low – business live

Economy
Finance
Politics
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Unemployment across the UK has dropped unexpectedly, as more people find work – or drop out of the labour market altogether. The latest labour market data, just released, show that the UK unemployment rate has fallen to 4.2% in April-June – the last quarter before the general election in July. Economist had expected a rise, from 4.4% to 4.5%. But according to the Office for National Stat..
The Guardian
13. August 2024 um 15:37

UK unemployment falls as wages growth hits lowest in two years

Economy
Finance
UK unemployment fell to 4.2% in June, but wage growth slowed to 5.4%, the lowest in 2 years. Vacancies declined, indicating a return to pre-pandemic job market. Analysts divided on interest rate impact: NIESR warned of "stickier inflation", while Capital Economics expected 2 rate cuts. Inactivity rose to 22.2% due to mental health challenges. Finance/business services saw 6.2% wage growth, while construction had the smallest at 3.5%. Chancellor Rachel Reeves to deliver her first budget on 30 O..
The Guardian
13. August 2024 um 07:55

Jobs market uncertainty causes headache for Bank of England rate setters

Economy
Finance
Politics
While the overall economic picture looks relatively benign, deep structural problems remainBusiness live – latest updatesBritain’s labour market is cooling, with annual earnings growth easing markedly and the number of job vacancies falling for a 25th month in a row.Or is it? The number of people in work climbed by almost 100,000 in the three months to June while the jobless rate fell from 4.4% to 4.2%. Continue reading...
seekingalpha
13. August 2024 um 06:04

UK's unemployment rate drops to 4.2% in June

Economy
Gary Yeowell The unemployment rate in the UK decreased to 4.20% in June from 4.40% in May 2024. ETFs: ( FXB ), ( EWU ), ( FKU ), ( EWUS ), ( FLGB ). Currency: ( GBP:USD ) More on UK FXB: Elections Have Consequences Bank of England cuts rates by quarter point to 5% Brexit bulletin: U.K. aims to reset the EU trade relationship Seeking Alpha’s Quant Rating on Invesco CurrencyShares British Pound Sterling Trust ETF
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact