MNI 5 THINGS: UK Earnings Growth Undershoots BOE Forecasts

By Jai Lakhani, Laurie Laird, Jamie Satchithanantham

     LONDON (MNI) - The following are the key points from the Office for

National Statistics' UK labour market data release for May.

     - The jobs market continues to confound economists, including those at the

Bank of England, as strong employment growth is failing to translate into a

long-awaited acceleration in wages.

     - Employment rose by a much-higher-than-expected 137,000, but total

earnings growth slipped to an annual rate of 2.5% in the three months to May,

the joint-slowest pace since November.

     - Yet again, a high level of vacancies has failed to materially lift wage

growth. Vacancies rose by 7,000 in the three months to May to 824,000, the

highest since records began in 2001.

     - Employers have not had to resort to increasing bonus payments to lure

additional staff. Bonuses fell by 0.8% on the year and rose by only 0.2% in the

three months to May, the weakest growth since the three months to October 2016.

     - Vacancies appear to be being filled by the previously economically

inactive. Inactivity fell by 86,000 to a joint-record-low of 21% of the

workforce. More than half of those returning to work had been looking after

family/home, as noted by MNI analysis.

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

--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com

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