UK: Mixed labour market data - TDS

According to analysts at TD Securities, UK’s labour report for the 3 months ending March provided a mixed batch of news.

Key Quotes

“The unemployment rate improved to another multi-decade low of 3.8%, but wage growth slowed slightly to 3.2% y/y for headline wage growth, while the ex-bonus measure slowed to 3.3% y/y and the important private sector regular pay measure slowed to 3.5% y/y.”

“The decline in the unemployment rate came entirely from a sharp reduction in the number of people looking for work, perhaps over nervousness about job prospects ahead of the original 29 March Brexit deadline.”

“On net, this report likely doesn't have any major implications for the Bank of England's MPC: they were expecting the unemployment rate to dip to 3.8% in 19Q2 anyway, and the slowdown in core wage growth is likely a bit faster than they were expecting.”