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16 Sep 2015
UK: Healthy labour market conditions prevail – TDS
FXStreet (Delhi) – Paul Fage, Senior Emerging Markets Strategist at TD Securities, suggest that the labour market data for July pointed to continued health in the labour market, with the unemployment rate registering 5.5% (on a 3MMA basis).
Key Quotes
“The claimant count in August also came out at 2.3%, its 6th consecutive month at this level. Private-sector regular pay growth advanced by 3.4% y/y (3MMA), remaining in a range that puts it at its strongest sustained growth rate since mid-2008.”
“It’s possible that compositional effects that had previously weighed on wage growth are starting to wane, which would support continued gains in household incomes going forward.”
“Broadly speaking, these numbers are consistent with the BoE’s August Inflation Report, which expected a gradual decline in the unemployment rate to 5.25% by the end of 2015, and consistent with a degree of slack of roughly ½% of GDP.”
Key Quotes
“The claimant count in August also came out at 2.3%, its 6th consecutive month at this level. Private-sector regular pay growth advanced by 3.4% y/y (3MMA), remaining in a range that puts it at its strongest sustained growth rate since mid-2008.”
“It’s possible that compositional effects that had previously weighed on wage growth are starting to wane, which would support continued gains in household incomes going forward.”
“Broadly speaking, these numbers are consistent with the BoE’s August Inflation Report, which expected a gradual decline in the unemployment rate to 5.25% by the end of 2015, and consistent with a degree of slack of roughly ½% of GDP.”