Keystone-SDA
The unemployment rate remained stable in the United Kingdom, at 4.7% in the three months completed in June, its highest level in four years, on a labor market which is cooling, according to the National Statistics Office (ONS) on Tuesday.
(Keystone-ATS) “Overall, the latter figures indicate a continuous slowdown” in the employment sector, estimates Liz McKeown, director of economic statistics of the ONS, who stresses that the number of employees has decreased in the country during 10 of the last 12 months, especially in the hotel and retail.
“The job offers, too, continued to decrease, also due to the drop in opportunities in these sectors,” she adds.
The growth of basic wages has remained stable and that of wages including bonuses has slightly slowed down, also underlines the ons.
For Richard Carter, analyst at Quilter Cheviot, ONS data rather argues in favor of “a new decrease in interest” of the Bank of England (BOE) “by the end of the year”.
“The Bank of England is faced with a delicate balance. Inflation remains at 3.6 % (in June), fueled by housing and transport costs, but signs of low labor market are becoming more and more difficult to ignore, “he said.
The BOE has just lowered its key rate to 4%, after a tight vote, to support an economy to the trouble – GDP fell two months in April and May. She called for caution for the future.
“It is still too early to say if there will be a reduction in November,” said Susannah Streeter, analyst at Hargreaves Lansdown, who judges December “a little more likely”.