UK labour market softens in July, despite strong wage growth12 Sep 2023 07:44
Sept 12 (Reuters) - Britain's labour market showed more signs of cooling in the three months to July despite another month of strong pay growth, according to data that leave the Bank of England on track for a further interest rate hike next month.
The unemployment rate rose to 4.3% in the three months to July from 4.2% a month earlier, its highest since the three months to September 2021, the Office for National Statistics (ONS) said.
The unemployment rate is already higher than the 4.1% the BoE had pencilled in for the third quarter as a whole, when it published its last set of forecasts in early August.
Employment dropped by a greater-than-expected 207,000 in the three months to July, the biggest such fall since the three months to October 2020, the data showed.
Wages continued to rise quickly, and above the rate of inflation - something which most investors think will prompt the BoE to raise interest rates again on Sept. 22, although perhaps for the last time in the current cycle.