MNI DATA IMPACT: UK Wage Growth Slows In Oct, Unempl Falls>

By Irene Prihoda and Laurie Laird 

     LONDON (MNI) - UK total wage growth slowed again in the three 

months to October, despite a further fall in unemployment levels, data 

released Tuesday showed. 

     The following are the key points from UK employment data 

published Tuesday by the Office for National Statistics.  

     - A sharp deceleration in wage growth could well job a few more MPC 

members to consider a reduction in the Bank Rate at this week's policy 

meeting.  Total wages increased by just 3.2%, well below expectations, 

and the slowest pace since the three months to September 2018. 

     - Real total wages also slowed sharply across the period, rising 

just 1.5% after rising 1.9% in the three months to October. Real wages 

ex-bonuses held up, rising 1.8% y/y as in September. Real wages were 

weighed in part by a base comparison to hefty bonus payments in 

October 2018.     

     - The Labour Force Survey unemployment rate flatlined at 3.8%, 

unchanged on September and still at the lowest level since December 

1974. Overall, unemployment is down 0.3 pp on quarter. 

     - The employment rate rose to a record high 76.2%, up from 76.0% in 

September and up 0.4% on quarter. Once again the rise was driven by 

females, seeing their unemployment rate fall to a record low 3.5%.

     - The October rise in employment levels was driven by 

self-employment, rising 33,000 against a net change of just 24,000,  

suggesting a modest decline in employed positions in the period.

     - Vacancies fell to 794,000, the lowest level since the three 

months to August 2017.  

     - Single month unemployment, an experimental and volatile number, 

fell to 3.5% in October, the lowest in a series that goes back to 

1992. It stood at 4.0% in September.

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

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