17 Jul 2014
Mixed sensations after UK employment figures - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, assessed the recent release of employment figures in the UK economy.
Key Quotes
"The release of the latest employment report from the UK provided further evidence that the pace of employment growth continues to surge. Employment increased by 254k in the three months to the end of May and has increased by 929k (3.1%) over the last year."
"It is the fastest annual rate of employment growth since the late 1980’s which has resulted in the employment rate rising to 73.1% matching the record high from late 2004/early 2005. The number of unemployed also continued to fall sharply by a further 121k lowering the official unemployment rate to 6.5%."
"The more volatile single month measure fell even more sharply to 6.2% signalling that the official measure is likely to continue falling in the coming months. With the unemployment having already fallen into the BoE’s medium-term equilibrium range, pressure is likely to continue building to begin raising rates later this year."
"The one disappointing aspect remains the subdued pace of earnings growth which excluding bonuses expanded by an annual rate of just 0.7%. Earnings growth will likely gradually pick up in the year ahead as the pace of employment growth eases."
Key Quotes
"The release of the latest employment report from the UK provided further evidence that the pace of employment growth continues to surge. Employment increased by 254k in the three months to the end of May and has increased by 929k (3.1%) over the last year."
"It is the fastest annual rate of employment growth since the late 1980’s which has resulted in the employment rate rising to 73.1% matching the record high from late 2004/early 2005. The number of unemployed also continued to fall sharply by a further 121k lowering the official unemployment rate to 6.5%."
"The more volatile single month measure fell even more sharply to 6.2% signalling that the official measure is likely to continue falling in the coming months. With the unemployment having already fallen into the BoE’s medium-term equilibrium range, pressure is likely to continue building to begin raising rates later this year."
"The one disappointing aspect remains the subdued pace of earnings growth which excluding bonuses expanded by an annual rate of just 0.7%. Earnings growth will likely gradually pick up in the year ahead as the pace of employment growth eases."