MNI 5 THINGS: Unusually-Strong Bonuses Boost UK Earnings

By Jai Lakhani and Jamie Satchi

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

data published Tuesday by the Office for National Statistics.

     -- Total wage growth jumped 0.2pp to 3.3% in the three months to October,

the highest since July 2008, the fourth straight increase and further cementing

the Bank of England's decision to raise interest rates in August.

     -- Much of the strength in total earnings was attributed to atypical bonus

pay, usually low in October according to ONS officials. However, strength across

the financial services and information and communication sectors helped to

explain the overall 18.1% y/y rise in bonus pay - the highest since September

last year.

     -- Finance sector bonuses rose 21.9% y/y in October, the biggest rise since

September last year, while service sector pay, which includes IT services, rose

by 23.1% y/y.

     -- Discounting for CPIH, total wage growth grew by 1.1% in the 3m to

October, up from 0.8%. That's the joint-biggest monthly change since May 2015

and the highest outturn since November 2016.

     -- Vacancies, a forward-looking indicator of job demand, rose further in

the three months to October, up 10,000 to 848,000, suggesting strong wage

pressures may persist looking forward.

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

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