Earnings Growth Moderates in Feb; Turns.....>

UK DATA: Earnings Growth Moderates in Feb; Productivity Turns Negative

--Jan-Mar Employment Level Up 197,000; Jobless Rate Steady at 4.2%    

--Jan-Mar Total Earnings +2.6% 3m y/y Vs +2.8% Dec-Feb

--Q1 UK Labour Productivity -0.5% q/q vs +0.7% q/q Q4 

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Nominal wage growth weakened in the three months to March, largely 

thanks to a 0.5% y/y drop in bonus payments versus March last year. 

Excluding bonuses, earnings growth edged higher, up 0.1pp to 2.9% 3m 

y/y, suggesting modest underlying growth. Elsewhere, the employment 

count rose sharply which, combined with a further 46,000 cut in the 

jobless count, was enough to take the inactivity rate to a record low 

21.0%. That said, output per hour, or headline labour productivity, 

receded back into negative territory in Q1, dropping to -0.5% q/q from 

+0.7% in Q4. While the quarterly fall suggests a easing in momentum, the 

same measure of productivity was 1.0% higher than a year ago.