A preview of the UK employment data due on Wednesday morning Lon time
- Due at 0830GMT
- For Jobless Claims, expected is -5K, prior was -4.9K
- For the Unemployment Rate, expected is 5.6%, prior was 5.6%
Bloomberg have a piece up pointing out that private-sector earnings have been picking up pace (Bloomberg using a rolling three-month basis)
But,
- Wage growth is slower than expected ... although the headline figures may simply suggest that wages are responding to labor market tightness with a longer lag than they have historically, but the gains will ultimately be realized
From Dan Hanson, an economist at Bloomberg Intelligence:
"One of the most striking features of the U.K. labor market's performance over the past two years has been the fact that the rapid erosion of slack brought about by the falling unemployment rate hasn't coincided with a sharp pickup in nominal wage growth
Our view is that this largely reflects pay lagging the movement in the jobless rate, though some of the weakness is likely to reflect the composition of employment gains."
