Morgan Newfield - UK Employment Rises
Morgan Newfield: Employment and salary growth in the UK rises; Bank of England considers additional interest rate hike.
TAIPEI, Taiwan, January 29, 2018 (Newswire.com) - The number of people employed in the UK increased and wage growth rose to an almost one year high. Morgan Newfield economists believe this data may prompt Bank of England policymakers to consider another interest rate hike.
According to Taipei, Taiwan based investment house Morgan Newfield currency analysts, the pound reached its highest level against the dollar since the Brexit referendum in June of 2016, and UK government bond prices fell to their lowest level since October.
The UK’s economy slowed significantly in 2017 as elevated inflation – due to the devaluation of the pound after the referendum - damaged the spending power of domestic households. However, predictions of a harder hit to growth did not materialize and employment figures remained robust.
The Office for National Statistics (ONS) stated that the number of people with jobs increased by 102,000 in the third quarter of 2017, the largest rise since the months leading to July bringing the figure of those employed to a high of 32.2 million.
This data disproved predictions by economists that employment would fall by 13,000.
Laborers between the ages of 50 and 64 benefited the most from the increase, with full-time jobs making up the majority of the increase.
Morgan Newfield economists believe the figures went some way to easing concerns that the UK’s labour market was slowing after several months in which the rate of employment dropped slightly.
The Bank of England raised interest rates for the first time in a decade in November as many of the bank’s policymakers were of the opinion that falling joblessness would fuel salary growth.
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Source: Morgan Newfield