17 May 2023 - Unemployment rate rises marginally as close to 47k join new claimants
The April employment report was published yesterday, and it showed that average earnings are still well above where the Bank of England needs to be to see inflation fall back close to its target of 2%. The headline figure, excluding bonuses, grew year-on-year to 6.7%, up from 6.6% a month earlier. The data shows that the economy is at something of an inflection point, with momentum beginning to turn, but that will likely come too late for the next Monetary Policy Committee Meeting. The data has remained in the same “ballpark” for a few months now and this will concern the Central Bank since it is a sure sign that inflation is becoming imbedded in the economy. The peak in wages may be close should the unemployment rate, which unexpectedly rose to 3.9% from 3.8% last month, continue to creep higher. Workers tend to become more satisfied with their lot as they become aware that new jobs are becoming scarcer. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.