‘Despite the strong jobs picture, however, there has been another real-terms fall in total earnings, with the growth in weekly wages low and inflation still rising.’ — Matt Hughes, ONS
The unemployment rate in Britain declined unexpectedly, while the jobless claimant count was little changed, missing analysts’ expectations. The official report by the Office for National Statistics published on Wednesday showed that claims for unemployment aid rose just 6K in May, following the prior month’s upwardly revised 7.5K, while economists anticipated a gain of 10K. The UK unemployment rate declined to 4.5% in the May quarter, reaching its lowest level since 1975. Meanwhile, the ONS stated that the Average Earnings Index remained flat at 1.8% year-over-year in May, matching market forecasts and following previous month’s 2.1% rise. Excluding bonuses, earnings advanced more than expected to 2% in March-May period, up from 1.7% registered in April. However, real earnings dropped 0.5%, as consumer prices rose at a faster pace than Britons’ pay. Inflation was at 2.9% in the reported month, showing the fastest pace of growth in about four years. Experts suggest that the Brexit impact on the economy is set to be even more explicit in the coming years.
