United Kingdom wage growth beats forecasts but still lags inflation

United Kingdom wage growth beats forecasts but still lags inflation

Britain's unemployment rate has struck a new 44-year low, official data showed on August 16, as the uncertainty of Brexit boosts temporary hirings.The rate dipped to 4.4 percent in the three months to June to record the lowest level since 1975, the Office for National Statistics (ONS) said in a statement.

There were 32.07 million people in work, 125,000 more than for January to March 2017 and 338,000 more than for the same three months year earlier.

The unemployment rate was down to 4.4%, its lowest since 1975.

And in another piece of good news for Bank of England governor Mark Carney, UK average weekly earnings 3m y/y grew by 2.1% in June, up from 1.9% and beating expectations of 1.8% while weekly earnings ex-bonus nudged also rose to 2.1% from 2.0% prior and 2.0% expectations.

Britain's unemployment rate hit a new low in the quarter to June, while wages increased more than expected but continued to lag behind inflation, new figures have shown.

Meanwhile, the so-called claimant count fell by 4,200 in July to 807,800. It expects wages to rise by 2 per cent this year before picking up in 2018 and 2019. Employers' groups and recruiters say they are finding it increasingly hard to recruit workers from the European Union following last year's Brexit vote, given the fall in the pound and an accelerating eurozone economy.

Excluding bonuses, real earnings still declined 0.5% in the year which will maintain underlying concerns surrounding the outlook for consumer spending.

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"These statistics show that record levels of people are in work across the country and earning a wage, which is great news", said the Minister for Employment, Damian Hinds.

'The task now is to build on this success through Jobcentre Plus and our employment programmes so that everybody can benefit from the opportunities being created'.

"This is the fourth month in a row where wages have fallen behind the cost of living".

United Kingdom unemployment has unexpectedly fallen to a new 42-year low helping to nudge average earnings slightly higher, another welcome surprise.

She said it was time to "boost wages by scrapping the pay restrictions in the public sector, investing in infrastructure, and increasing the minimum wage".

"A Labour government will stand up for all working people, implementing a real Living Wage of £10 per hour and bringing an immediate end to Tory austerity".