MNI DATA IMPACT: UK Total Wage Growth Accelerates In July>

By Les Commons and Laurie Laird

LONDON (MNI) - Wage growth continued to accelerate in the three months 

to July, reaching its fastest pace since the financial crisis, while 

employment growth slowed modestly. 

     The following are the key points from UK employment data 

published Tuesday by the Office for National Statistics.  

     - Total wages surged by 4.0%, the fastest pace since the three 

months to May of 2008. Bank of England policymakers noted a steadying of 

pay growth in August, and the latest data could be an unwelcome surprise 

ahead of their meeting next week.

     - Pay growth was strong across the board, particularly in financial 

service, where wages rose by 5.3%, the fastest pace since the three 

months to August 2011.

     - Despite a 7.7% rise in bonuses over the latest three months 

(concentrated in the month of July), regular wage growth lagged, rising 

by 3.8%, down from 3.9% in the second quarter.

     - Real total wages increased by an annual rate of 2.1%, the 

fastest pace since Q3 2015, but with inflation likely to rise following 

the recent slump in sterling, real wage growth may falter in months to 

come. 

     - Employment growth slowed to a below-trend pace, rising by just 

31,000, down from a 115,000 gain in the second quarter. The was enough 

to push the unemployment rate down to 3.8% from 3.9% in Q2, still above 

Bank of England staff forecast of a fall to 3.7%.

     - The total employed fell in the three months to July for the 

first decline since the three months to October 2017, albeit to a still 

elevated 32.777 million.

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

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