teknolojiarsivi.com March 21, 2018

Weak wage growth dampens chance of rate rise

22 February 2018, 12:55 | Vickie Mathis

Employment numbers steady but wage growth stuck in neutral

Britain has registered its first rise in unemployment since the Brexit referendum in 2016. The increase in the jobless rate to 4.4% surprised economists and the pound dropped by about 0.6% against the dollar as investors pondered whether the new data

The number of unemployed people increased by 46,000 to 1.47m in the three months to December, when compared with July to September 2017.

The ONS said the unemployment rate rose to 4.4 percent from 4.3 percent in the three months to December, the first increase since the three months to February 2016, and the number of jobless rose for a third monthly report in a row.

"Rising employment this past year was largely driven by United Kingdom nationals" as fewer eastern Europeans and non-EU nationals were working than a year earlier, ONS statistician Matt Hughes said. They may also fuel speculation that the Bank of England could raise interest rates again as early as May after policy makers said the Brexit vote had lowered the pace the economy can grow without fanning inflation.

The UK jobless rate increased in the fourth quarter, data from the Office for National Statistics showed Wednesday.

Average weekly earnings for employees in nominal terms (not adjusted for inflation) increased by 2.5% including and excluding bonuses.

"Rising unemployment is disappointing, but job vacancies reaching another record shows that businesses are creating opportunities".

Unemployment rates are calculated by people who are registered looking for work as a proportion of the working age population.

Britain's unemployment rate has risen for the first time in 16 months, official data showed Wednesday, in a sign that Brexit uncertainty is feeding into the wider economy.

British government bond prices rose and sterling briefly fell against the US dollar after Wednesday's figures showed the sharpest rise in the number of people out of work in nearly five years.

With consumer price inflation at 3.0%, the stubbornly low wage growth means household real incomes continue be squeezed.

At the same time while earnings have continued to grow more slowly than prices, new figures reveal. In particular, fewer citizens of the eastern European countries that joined the EU in 2004 and of non-EU countries were in work than in the year before.

In November, the official budget watchdog had forecast borrowing of 49.9 billion pounds (about $69 billion) for the full year.

TUC general secretary Frances O'Grady said: "Nobody should have to rely on a zero-hours contract for their main job, but over 900,000 workers remain stuck in that situation".

Economist Ruth Gregory at Capital Economics said it was a "strong set of labour market figures should dispel concerns that the recent weakness was a sign of things to come".

Other News

Trending Now

PM Modi announces Rs 20000-crore defence corridor for Bundelkhand
In addition, airports in 11 other cities of the state were being developed to give a boost to regional connectivity, he said. Adani Group Chairman Gautam Adani too spoke at the summit. "This will be crucial for the state's development", he said.

Google brings AMP pages to Gmail: Here's how it will work
Through AMP Stories , publishers will let you tap through quick bits from their news stories in a carousel of slideshow content. However, the timeline for AMPs actually coming to Gmail is quite vague; Google merely said it'll happen "later this year".

South Korea, US move on with holding postponed drill
Song said the South and the USA postponed the exercises in accordance with the Olympic spirit. This was announced by the Defense Ministry in Seoul , quoted by the news agencies.

ICE lawyer charged for stealing identities of immigrants to commit bank fraud
She also confirmed that Sanchez would be appearing in court on Thursday but did not give details beyond that. Additionally, the court documents claimed that Sanchez had used R.H.'s social security number and birthday.

Trump gets recommendations on tariffs for steel imports
Trump has the latitude to choose between these types of options or even enter talks with producers to find solutions. A quota on all imports from all countries equal to a maximum of 86.7% of their 2017 exports to the United States.

China warns vs Trump trade threats
Apart from recent tariffs on washing machines and solar panels, the USA looks likely to impose tariffs on steel and aluminium. Steel (X) rose 3.6%, AK Steel (AKS) 4.4%, Steel Dynamics (STLD) 2.1%, and Nucor (NUE) 1% on the stock market today .

Microsoft Photos Companion app launched
You can then effortlessly transfer the photos and even videos off your phone and into the Photos app's camera roll. Moreover, a QR code is also required in the app that helps you start transferring the content.

Obamas Unveil Official Portraits, Reveal Lasting Legacy
I appreciate artistic freedoms, but I feel these portraits need to be more representative of the subjects being painted. We should also condemn the Obamas' commissioning of such an individual to paint their official portraits.

Anti-Corruption Police Arrest Latvian Central Bank Chief
The defence ministry said there was a "high probability that [a] massive information operation" had been conducted from overseas . The government cannot force him to step down - only a court can - because the central bank is politically independent.

Justice Thomas delivers pro-gun rant just days after the Parkland shooting
Supreme Court declined to hear a Second Amendment case challenging California's 10-day waiting period for firearms purchases. He criticized his colleagues for declining to take up a significant gun case in the past decade.