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19 Mar 2014
Flash: UK labour market improves - RBS
FXStreet (Guatemala) - RBS strategists noted that the latest UK labour market data showed a moderation in employment growth – to a still-healthy and probably more sustainable pace.
Key Quotes:
“The detail of the jobs numbers was a little less robust, with an outsized increase in self-employment though employment growth remains fairly broad-based by sector”.
“The moderation in employment growth suggests ongoing declines in the unemployment rate but at a more pedestrian 0.1pp per quarter. The BoE's new six 'selected indicators of labour market slack' show the most negligible of changes in spare capacity since the launch of 'Phase II' of the MPC's policy guidance”.
“The uptick in wage inflation, as new year pay deals filter into the data, is fairly benign and Average Weekly Earnings growth remains significantly below the MPC's full-year forecasts. In short, the labour market data are consistent with the BoE's dovish bias”.
Key Quotes:
“The detail of the jobs numbers was a little less robust, with an outsized increase in self-employment though employment growth remains fairly broad-based by sector”.
“The moderation in employment growth suggests ongoing declines in the unemployment rate but at a more pedestrian 0.1pp per quarter. The BoE's new six 'selected indicators of labour market slack' show the most negligible of changes in spare capacity since the launch of 'Phase II' of the MPC's policy guidance”.
“The uptick in wage inflation, as new year pay deals filter into the data, is fairly benign and Average Weekly Earnings growth remains significantly below the MPC's full-year forecasts. In short, the labour market data are consistent with the BoE's dovish bias”.