Jun Employment Rate, Hours Worked Fall

• APR-JUN LFS JOBLESS RATE 3.9% VS 3.9% MAR-MAY
• APR-JUN AVG TOTAL EARNINGS -1.3% VS -0.3% PRIOR
• APR-JUN AVG EARNINGS EX-BONUS -0.2% VS +0.7% PRIOR
• JUL CLAIMANT COUNT up 94,000 to 2,688,700

The UK's jobless rate remained unchanged in Jun, in contrast to markets looking for an uptick (BBG: 4.2%). The employment rate fell 0.2% with total employment decreasing by 220k in Jun, showing the largest quarterly decrease since 2009. Jun's report shows that employment is weakening, while inactivity is increasing, resulting in an unchanged reading for the headline jobless rate. Approximately 7.5mn people are estimated to be away from work in Jun. Actual average weekly hours worked fell to a record low of 25.8h (all workers), while the hours of full-time workers fell to 30.3h. Similarly, total hours worked dropped to a series low of 849.3mn. Total wage growth fell by 1.2% in Jun, while AWE ex bonuses is down 0.2% which is the lowest level on record. Vacancies declined by 274k to 370,000 in June, only 10% higher than the low reached in Jun.