UK: Wage growth is expected to remain strong – Barclays

The Barclays Research Team is out with its take on today’s UK labor market report due on the cards at 0930 GMT, with the key focus likely to be on the wage growth figures.

Key Quotes:

“The claimant count continues to rise slowly, however, this is unlikely to feed into a higher unemployment rate just yet, as recruitment consultants continue to report staff shortages. 

However, the risks are tilted to the upside as the past three months have seen an unusual increase in reported inactivity. Wage growth is expected to remain strong with core at 3.1%y/y and headline at 2.9% y/y.”