UK basic pay speeds up but jobs market shows some cooling

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Basic pay in Britain grew more quickly again in the last three months of 2022, underscoring the Bank of England's worries about inflationary heat in the economy, but other data published on Tuesday suggested a cooling in the labour market.

Sterling rose against the U.S. dollar and the euro immediately after the data before easing back.

"And with activity ending last year a bit stronger than the Bank had expected, we think the Bank of England may have one or two more rate hikes in the pipeline," Webb said. The unemployment rate held at 3.7% in the three months to December, in line with the Reuters poll and not far above its lowest level in almost 50 years.Vacancies in the November-to-January period fell for a seventh time in a row, down by 76,000 to 1.134 million.

The ONS said there was a record flow of people moving out of economic inactivity during the October-to-December period as increasing numbers returned to work, potentially easing one of the BoE's concerns about the labour market.

 

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Any system in which basic pay rising is a negative thing is fucked up beyond any hope of repair. Especially whilst executive pay is soaring and nobody seems to bat an eyelid.

Energy prices and Brexit is fuelling inflation don’t you think? Not pay which has been falling in the public sector for 12 years…..

Yes but ppl are not going out and buying clothes,tvs,etc. They are struggling to pay their soaring energy bills,food,mortgage interest payments!

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