‘The wage figures are astonishingly weak.’ – Samuel Tombs, Pantheon Macroeconomics
The number of Britons applying for unemployment benefits dropped more than expected, whereas wage growth slowed unexpectedly in the three-month period to April. The Office for National Statistics reported on Wednesday that the unemployment rate came in at 4.6% for the period between February and April, unchanged from the prior month and in line with forecasts. Meanwhile, the number of claimants fell to 7.3K, following the preceding month’s upwardly revised figure of 22.0K and surpassing expectations for a decrease to 12.5K. Meanwhile, the number of people in work rose 109K in the three-month period to April. Thus, the employment rate climbed to a record high of 74.8%. Apart from that, average hourly earnings grew just 2.1% between February and April, the weakest since February 2016 and following the March quarter’s downwardly revised increase of 2.3%, whereas analysts anticipated a rise of 2.4%. A combination of weak wage growth and strong inflation raised concerns over the ability of consumer spending to contribute to economic growth.
