16 Jul 2014
UK employment data continues showing strength - ING
James Knightley from ING remarks that the UK labor data, released today, continues showing strength with the unemployment rate dropping further to 6.5% from 6.6%.
Key quotes
"Employment rose 254,000 over the past three months while the number of people classifying themselves as unemployed fell by 121,000."
"Total hours worked per week rose to 987 million, which is up by around 8% on the lows seen in 2009."
"Wages remain low though, rising just 0.3% YoY, well below the 1.9% rate on inflation."
"The ONS caution though that the numbers are still being affected by late payments of bonuses in 2013 and so the numbers are difficult to interpret."
"This effect should fade in coming months and we suspect wages will be pushing back up to 2-2.5% YoY towards the end of the year, especially with the minimum wage rising 3% in October."
"Moreover, the slack in the labour market continues to be eroded and inflation pressures will gradually increase. Consequently, we favour a rate hike in November. "
Key quotes
"Employment rose 254,000 over the past three months while the number of people classifying themselves as unemployed fell by 121,000."
"Total hours worked per week rose to 987 million, which is up by around 8% on the lows seen in 2009."
"Wages remain low though, rising just 0.3% YoY, well below the 1.9% rate on inflation."
"The ONS caution though that the numbers are still being affected by late payments of bonuses in 2013 and so the numbers are difficult to interpret."
"This effect should fade in coming months and we suspect wages will be pushing back up to 2-2.5% YoY towards the end of the year, especially with the minimum wage rising 3% in October."
"Moreover, the slack in the labour market continues to be eroded and inflation pressures will gradually increase. Consequently, we favour a rate hike in November. "