Wage growth figures defy economic gravity - but there are some signs of a labour market slowdown

  • 📰 SkyNews
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 67%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

There are signs the jobs market is cooling but rate rise expectations run hot

While still high, and amid evidence that businesses are still creating jobs the market cannot fill, it's now comfortably below the total number of unemployed which stands around 1.3 million. The number of economically inactive people also dipped again as more people returned to the workplace.

Is this a sign that the labour market may finally be cooling and the squeeze of higher interest rates is finally being felt in the real economy? Perhaps. If so, it isn't happening fast enough yet to stop real earnings from falling.June: 'Current wage rises unsustainable'Real incomes fell -1.7% according to the ONS. Persistent price rises are playing a part too, and the two appear to be chasing each other in an inflationary circle.

All of which has led markets to anticipate yet another interest increase from the Bank of England in August as the

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 35. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines