MNI BRIEF: Unemployment Higher But Wage Growth Soars.

UK wage growth continued to accelerate in the three months to May, again beating analysts forecasts and putting further pressure on the Bank of England's rate setters ahead of the August meeting.

Despite a pick-up in the unemployment rate to 4.0% (May alone was 4.3%), the pressure on pay saw total pay rise a nominal 6.9% in the period, while earnings excluding bonuses rose 7.3% y/y. It was the highest rate of growth since March 2021 -- a period distorted by base effects a year on from the first Covid lock-down. Outside the pandemic period, the growth in ex-bonus earnings is a joint record high

The earnings data will make grim reading for the Monetary Policy Committee, as wage growth continues to climb, despite policymakers saying they are starting to see some easing in tight labour markets albeit at a slower pace than they would like to see. (MNI INTERVIEW: UK's ONS Plans Data On Skilled Worker Demand)