Britain’s jobless rate rose for a second month and there were other signs in data on Tuesday that some of the inflationary heat in the labour market is cooling as the economy stumbles, including an increase in older people looking for work.
But the Bank of England (BoE) – which looks set to raise interest rates for the ninth consecutive meeting on Thursday – was likely to note the strongest rise in basic pay on record, not including the period around the COVID-19 pandemic.
Sterling briefly rose against the U.S. dollar and the euro after the figures were published by the Office for National Statistics (ONS), before falling back.
The unemployment rate increased to 3.7% in the three months to October from 3.6% in the three months to September. Vacancies in the September-to-November period fell on an annual basis for the first time since early 2021 when Britain was under lockdown.
But regular pay rose by a stronger-than-expected 6.1% in the August-to-October period, the biggest gain since records began in 2001, excluding jumps during the COVID-19 pandemic which were distorted by lockdowns and government support measures.
Total pay including bonuses also increased by an annual 6.1%, the ONS said.
Martin Beck, an economist with forecasters EY Item Club, said 6.2% growth in service sector wages would catch the BoE’s attention but it would probably still slow the pace of its rate hikes to 50 basis points (bps) from November’s 75 bps increase.
This report’s information was first seen on REUTERS; to read more, click this link.
