U.K, Jobless Rate Down, EU Worker Numbers Rise
August 16 2017 - 5:27AM
Dow Jones News
By Jason Douglas and Wiktor Szary
LONDON--The unemployment rate in the U.K. fell to its lowest
level in more than 40 years in June, while the number of European
Union nationals working in Britain hit a record high.
The Office for National Statistics said Wednesday the
unemployment rate in the U.K. declined to 4.4% in the three months
through June, from 4.5% in the previous three-month period, marking
the lowest rate of joblessness since spring 1975.
Figures show the labor market's strength still isn't feeding
into robust wage growth, though, highlighting a conundrum that is
testing central banks in many advanced economies. Wages in the U.K.
rose in the three months through June at an annual 2.1%, excluding
bonus payments, only marginally above the 2.0% growth recorded the
previous three months.
The Bank of England has nevertheless said it believes interest
rates in the U.K. will need to rise faster than investors expect to
keep inflation in check. Annual inflation in Britain was 2.6% in
July, well in excess of the BOE's 2% target. Economists predict the
BOE will likely raise its benchmark interest rate early next
year.
The number of people in work in the U.K. in June rose to 32.1
million, the highest level ever recorded, swelled by an increase in
both U.K. citizens and foreign nationals finding jobs.
The number of EU workers in the U.K. rose in June to 2.4
million, reflecting a fall in unemployment among that group and a
decline in those studying or otherwise outside the labor force.
The labor market data don't record whether the U.K. experienced
an influx of new arrivals from the EU or elsewhere during the April
to June period.
Controlling immigration from the EU is one of the central planks
of the government's Brexit strategy. Employers' groups and
recruiters say they are finding it increasingly difficult to
recruit workers from the EU following last year's Brexit vote,
given the fall in the pound and an accelerating eurozone
economy.
Brexit talks between London and Brussels are set to resume later
this month.
Write to Jason Douglas at jason.douglas@wsj.com and Wiktor Szary
at Wiktor.Szary@wsj.com
(END) Dow Jones Newswires
August 16, 2017 05:12 ET (09:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.