Largest unemployment drop in decade for the UK.

How deep will the hole be?

The GBP GBP The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth Read this Term has remained remarkably strong recently as I mentioned here. However, the latest set of jobs data have shown that cracks are sadly starting to appear for the UK as the furlough scheme heads towards its wind down in October.

The UK's finance minister always said that every job can't be protected and the Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term is forecasting a jobless rate of 7.5% by the end of this year. The latest jobs data from the UK yesterday show some of the COVID-19 induced slowdown starting to appear in the data.

Employment starts to show the strain

Employment is now down 220K for Q2 and the UK payrolls data show that employment has fallen by 730K since March. The unemployment rate is steady at 3.9%, but that is artificially held where it is due to the furlough scheme which is paying inactive workers. Also, remember that some people had given up looking for work and were therefore not considered unemployed.

Pay fell by the most in over 10 years from the April to June period (1.2%) which is indicative of how workers on the UK's job retention scheme only receive 80% of their pay.