UK: Unemployment rate held at 3.8% - TDS

Analysts at TD Securities note that the UK's unemployment rate held at 3.8% for the 3 months ending April, while headline wages ticked up to 3.1% 3m/y with the March data also revised higher.

Key Quotes

“The ex-bonus measure was also stronger than what we and the consensus were expecting at 3.4% 3m/y (vs 3.2% expected), and "core" ex-bonus private sector wages held steady at 3.5% 3m/y. All in all, we think this report is going to keep the BoE on their front foot as far as labour cost pressures are concerned.”

“A raft of BoE speakers have spoken since yesterday, with Michael Saunders sounding somewhat hawkish (echoing Haldane's weekend comments), while Vlieghe acknowledged that data had come in weaker than their recent forecast.”