"On one level this data shows a stable labour market performing as expected - albeit not particularly strongly. Unemployment is holding steady and in line with expectations, while wages continue to rise faster than inflation. However, underneath that there are some worrying signs. Vacancies have fallen by 10,000 in the quarter to August, a 38th consecutive fall, and is less than half the number of people currently claiming unemployment benefits."
"With the estimated number of work force jobs also falling, it looks like the UK economy is simply not creating enough jobs and that problem is slowly worsening. With wages rising faster than inflation, and inflation itself still high, it seems unlikely the Bank of England will ride to the rescue with interest rate cuts in the near term. This is not the pro-growth economy the government was hoping for when it was elected,"
Employment rate was 75.2% in the three months to July, down marginally from 75.3% in June. Unemployment remained at 4.7% in July, unchanged from June. Economic inactivity in the three months to June was 21.1%. Annual total earnings growth rose to 4.7% from 4.6% in the prior period. Vacancies fell by 10,000 in the quarter to August, marking a 38th consecutive decline and standing at less than half the number of people claiming unemployment benefits. Estimated workforce jobs are also falling, suggesting the economy is not creating enough jobs. Wages are rising faster than inflation while inflation remains high, reducing the likelihood of near-term interest rate cuts and increasing the risk of cooling economic conditions into autumn.
Read at London Business News | Londonlovesbusiness.com
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