UK unemployment figures are down to 6 percent, but wages go up by 0.7 percent.
A situation has arisen as the UK productivity problem becomes apparent, especially in the IT and construction industries where workers are demanding higher levels of pay due to shortages of skills. This forecasts a candidate-driven market with wages up by 0.1 percent. On the flip side, wages have not increased hugely due to the amount of flexible labour and the increase of self-employed people and zero-hour contracts.
Employment rates are read against a series of market situations: Wages are rising slower than prices, plus the sharp drop in historic investment to future-proof businesses. This has been due to the banks low lending capacity, sterling’s low against the dollar encumbering export profit margins, and the constant slide in the Euro zone fiscal growth.
The data issued by the Office for National Statistics for the change in the number of people claiming unemployment-related benefits during the previous month shows a gradual growth in the UK market taking June’s figures of minus 27.4k to today’s figures down by 18.6k. However, as reported by Bloomberg, “Jobless claims fell the least since April 2013 in September and a quarterly increase in payrolls was the smallest in more than a year.”
Key figures for UK employment and earnings:
Average Earnings Index 3m/y 0.7% up from 0.6%
Claimant Count Change (people claiming unemployment benefits) -18.6K from -33.2K
Unemployment Rate down 6.0% from 6.2%