The ONS had delayed its jobless data due to an overhaul of its Labor Force Survey, which now includes additional data such as tax receipts and claimant count. Despite the steady unemployment rate, the labor market remains robust, which could potentially lead to pressures if workers demand wage increases.
In September, the Bank of England (BOE) maintained its rates. The average weekly earnings growth, excluding bonuses, fell to 7.8% during the June-August period. This is the first drop since January but still significantly outpaces the annual inflation rate of 6.7%.
Ashley Webb of Capital Economics observed that the labor market did not ease as expected in August. However, she does not believe this will influence the BOE’s decision on rates next week, asserting that interest rates are gradually performing their function.
The unemployment rate was lower at 4.0% during March-May with a drop in employment of 82,000. Unemployment has been on a steady rise since hitting a low of 3.5% in June-August 2022.
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