U.K. Unemployment at 42-Year Low Fails to Spur Wage Pickup
Wednesday, 13 September 2017 16:05 WIB | ECONOMY |Ekonomi inggrisUK Unemployment

For British workers, the lowest jobless rate in more than four decades isn't enough to maintain their standard of living.

Basic wages rose an annual 2.1 percent in the three months through July, unchanged from the second quarter and below market forecasts, Office for National Statistics figures Wednesday showed. Pay fell 0.4 percent when adjusted for inflation, which is now running just shy of 3 percent.

The figures underscore the dilemma facing Bank of England policy makers over when to raise interest rates. Those arguing to keep the benchmark at a record low point to the growing strain on consumers from the sterling-driven surge in prices.

That pressure comes against a backdrop of record employment and growing skills shortages. The jobless rate fell to 4.3 percent, the lowest since 1975 and below the BOE's equilibrium rate.

Governor Mark Carney said that œan element of Brexit uncertainty is preventing firms from awarding bigger wage increases. Other explanations include poor productivity and companies clamping down on wages to offset rising import costs.

The squeeze has taken a toll on living standards, especially for public-sector workers, who have experienced a 1 percent cap on salary increases as part of stringent austerity since 2010. 

Prime Minister Theresa May said this week that the government will relax the cap for police and prison officers but Trades Union Congress General Secretary Frances O'Grady responded by demanding œa pay rise across the board for Britain's 5 million public-sector workers.

The number of people in work surged 181,000 to 32.1 million in the latest three months, the biggest increase since the end of 2015. Unemployment fell 75,000 to 1.46 million, the steepest drop in two years. Inactivity also declined sharply.

Total pay including bonuses rose 2.1 percent, the same as in the second quarter, with pay in July alone growing just 1.4 percent, the ONS said. Adjusted for inflation, it fell a three- monthly 0.4 percent. 

Bets on the Bank of England increasing interest rates increased this week after inflation climbed to 2.9 percent in August, matching the highest pace in four years. Traders are now largely pricing in a hike by the end of 2018, though some economists remain unconvinced. 

At Bloomberg Intelligence, Dan Hanson and Jamie Murray expect Brexit uncertainty to increasingly weigh on growth and the labor market, leading the BOE to keep rates on hold until 2019. 

There were some signs of weakness in the latest figures, with vacancies in the economy falling by 7,000 in the quarter.

 

Source : Bloomberg

RELATED NEWS

U.S. Housing Starts Steady, Permits Rise Ahead of Hurricanes
Tuesday, 19 September 2017 19:46 WIB

Konstruksi rumah baru AS yang menguat pada bulan Agustus bersamaan dengan lonjakan permintaan mengindikasikan pasar perumahan bergerak maju sebelum terjadi kemungkinan adanya terjangan sementara dari Badai Harvey dan Irma, menurut data pemerintah pada hari Selasa.   Sorotan Pembangunan Rumah (Agu...

U.S. Retail Sales Fall After Downward Revisions in Prior Months
Friday, 15 September 2017 19:48 WIB

Sebuah penurunan tak terduga pada penjualan ritel Agustus dan revisi turun ke dua bulan sebelumnya mengindikasikan bahwa Amerika mengurangi pembelanjaan mereka selama musim panas, menurut data Departemen Perdagangan pada hari Jumat.   Sorotan untuk Penjualan Ritel (Agustus) Keseluruhan penjualan...

U.S. Inflation Picks Up, Ending Five-Month Streak of Misses
Thursday, 14 September 2017 19:54 WIB

Inflasi akhirnya bisa kembali ke jalur untuk mencapai target dari Federal Reserve, karena biaya hidup AS dipercepat mengikuti pelonggaran yang lemah, menurut data Departemen Tenaga Kerja pada hari Kamis. Indeks harga konsumen meningkat 0,4% m/m (kenaikan 0,3%) setelah menguat 0,1% pada bulan se...

Unexpected Drop in U.S. Jobless Claims Shows Sturdy Job Market
Thursday, 14 September 2017 19:48 WIB

Pengajuan untuk tunjangan pengangguran di AS secara turun tak terduga minggu lalu, menggarisbawahi pasar tenaga kerja yang tangguh bahkan saat musim badai Atlantik memperkenalkan volatilitas tambahan terhadap angka tersebut, data Departemen Tenaga Kerja menunjukkan pada hari Kamis.   Sorotan pada...

China Economy Cools Again as Industry, Retail, Investment Slow
Thursday, 14 September 2017 09:21 WIB

Laju ekspansi ekonomi China secara tak terduga stagnan bulan lalu setelah Juli yang tidak bersemangat, karena output pabrik, investasi dan penjualan ritel yang melambat. Output industri naik 6,0% dari tahun sebelumnya di bulan Agustus, dibandingkan proyeksi rata-rata 6,6% dan 6,4% Juli. Penjualan ...

ANOTHER NEWS
Oil Gains on Signs U.S. Stockpile Gains Eased After Harvey
Wednesday, 20 September 2017 14:12 WIB Oil rose on signs the pace of U.S. stockpile gains is slowing as refiners resume operations after Hurricane Harvey, boosting crude demand. Futures climbed as much as 0.8 percent in New York after declining 0.9 percent Tuesday....

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.