MNI 5 THINGS: Jobs Market Remains Hot; Borrowing Deteriorates

By Jai Lakhani and Laurie Laird

     LONDON (MNI) - The following are the key points from the UK labour market

and public sector finance data published Tuesday by the Office for National

Statistics.

     - Unemployment fell unexpectedly in the three months to November, slipping

to 4.0%, boosted by a forecast-busting employment jump of 141,000.

     - That supported a modest, but continual improvement in earnings growth,

with total wages rising by 3.4%, the biggest increase since the three months to

July 2008.

     - Adjusting for inflation, earnings rose by an annual rate of 1.2%, a

two-year-high, and real earnings growth could accelerate with inflation expected

to fall below 2% early in 2019.

     - However, members of the Bank of England's Monetary Policy Committee, who

have long been hawkish on wage acceleration, warned of "transitory strength" in

pay growth in the minutes of their last meeting.

     - Public sector borrowing rose to Stg2.976 billion in December, exceeding

expectations, lifted by an increase in EU contributions when compared with

December of 2017.

     - BONUS POINT - Year-to-date borrowing fell by 26.7% to Stg35.9 billion,

but has already exceeded the OBR target of Stg25.5 billion. Even if the surplus

hits the average of Stg8.9 recorded in January/February of the previous two

years, the Treasury will face a challenge in meeting its target.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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