Hot UK labour market raises pressure on BoE to act again

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Britain's labour market outperformed even the highest expectations of economists polled by Reuters in data on Tuesday, piling pressure on the Bank of England to raise interest rates again in the face of unrelenting price pressures.

Employment and wage growth soared during the three months to April while the unemployment rate fell, according to the Office for National Statistics.

Annual growth in wages excluding bonuses rose to 7.2% during the three months to April, up from 6.8% in the three months to March. Employment rose by 250,000 in the three months to April, against the Reuters poll forecast for a 162,000 increase. April's data are the first to include the impact of a 9.7% rise in the minimum wage, and will be closely analysed by the BoE as it tries to judge how lasting an effect Britain's recent spell of double-digit inflation has had.

 

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