pandemic levels. The increase in unemployment was driven by people unemployed for up to 6 months. In the latest quarter, the number of people unemployed for up to 6 months increased, with the largest increase since August to October 2022. This suggests that it is taking longer for those leaving economic inactivity to find work than in recent periods.in regular pay was 7.8%; this is the highest regular annual growth rate since comparable records began in 2001. Average earnings incl.
There is no denying the UK economy has remained resilience for the large part, however today’s data will give the Bank of England a massive headache. We have seen a bigger than expected drop-off in unemployment, but the Central Bank had stressed prior to the release that the average earnings figure would be crucial. Given the massive beat in average earnings it is unlikely that the BoE will be able to take its foot of the pedal in terms of rate hikes, at least not yet.
The Bank of England did leave the door open to further interest rate hikes and I think it is something they will have to act on following today’s data releases. We obviously have CPI data tomorrow with any print above or in line forecast likely to cement another rate hike in September.