The April unemployment data from the UK posted a new record in April as the nation’s unemployment rate fell to 4.6% marking a 12 year. The unemployment rate slipped from 4.7% in the Dec – Jan period.
Despite the blockbuster headline, regular earnings fell 0.2%, three months to the year, compared to a 0.1% increase in the Dec – Feb period suggesting that earnings growth might have stagnated including inflation-adjusted earnings posting a decline.
On a monthly basis, the UK’s unemployment rate was seen at 4.3%, which the lowest since record keeping began in the UK. The decline in the unemployment rate clearly failed to translate to higher earnings growth which has become a factor as policy makers at the Bank of England contemplate on the next policy move.
Data from the UK’s Office for National Statistics (ONS) showed that average weekly earnings which excluded bonuses increase 2.1% in the first quarter. It was slightly below the 2.2% gain seen previously.
With the UK’s inflation rate rise to 2.3% in March, real wages for the period was seen declining by 0.2 percentage points during the quarter ending March.
In March alone, real wages were seen falling by 0.2% in the quarter.
When accounting for bonuses, earnings rose 2.4% at an annual rate in the three months to March. This put the real wage growth at 0.1% during the quarter including bonuses. It was the lowest level since October of 2014.
Read full report: https://www.orbex.com/blog/2017/05/uk-real-wages-slip-unemployment-rate-hits-12-year-low/