Wednesday, 17 July 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Strong U.K. Wage Growth Continues Amid Tight Labor Market
Tuesday, 14 May 2019 15:53 WIB | ECONOMY |

British workers are enjoying a resurgence of bargaining power as labor shortages leave employers struggling to fill jobs.

Basic pay rose an annual 3.3% in the first quarter, close to the fastest pace since 2008, Office for National Statistics figures published Tuesday show. Pay including bonuses rose 3.2%. Wage growth was less than 3% a year ago.

The increase came as the number of people in work rose by 99,000, taking the jobless rate to a 44-year low of 3.8%. The employment rate stayed at a record high of 76.1%.

A buoyant labor market helps to explain the resilience of consumer spending, which along with Brexit stockpiling drove the economy last quarter. Wage growth is now easily outpacing inflation, which averaged less than 2% between January and March.

Companies are failing to increase productivity at the same pace, however, with figures Tuesday showing that output per hour was 0.2 percent lower than a year earlier. The result is that unit labor costs, a measure of domestically generated inflation watched by Bank of England rate setters, are accelerating.

There was some good news for firms facing labor shortages as the number of EU nationals working in the U.K. rose to a record-high of 2.38 million, up 98,000 from a year earlier. The rise was primarily driven by Bulgarians and Romanians, with little increase among citizens of older EU countries and those that joined in 2004.

Employment has been fuelled by a sharp fall in economic inactivity. The growth has been driven by full-time work, and was especially strong among women and the over-50s. While the increase last quarter marked a slowdown from the stellar gains seen around the turn of the year, it may have been partly due to a lack of suitable candidates.

Source : Bloomberg

RELATED NEWS
Retail sales pop again in June in good sign for consumer-driven U.S. economy...
Tuesday, 16 July 2019 19:58 WIB

Sales at U.S. retailers rose solidly in June for the fourth month in a row, pointing to a strong rebound in consumer spending in the second quarter that suggests the economy is not as fragile as the F...

UK wages rise by 3.6% 3m y/y in May, beat estimates...
Tuesday, 16 July 2019 16:02 WIB

The Office for National Statistics (ONS) showed on Tuesday, the UK's average weekly earnings, excluding bonuses bettered expectations, arriving at 3.6% 3m y/y in May versus 3.4% last and 3.5% expected...

China Economy Slows Further in 2nd Quarter Amid Trade Standoff...
Monday, 15 July 2019 09:14 WIB

China economy continued slowing in the second quarter, with sluggish domestic output and continuing trade tensions pulling growth down to the weakest pace since the early 1990s. Gross domestic produc...

U.S. wholesale prices increased 0.1% in June, PPI shows...
Friday, 12 July 2019 19:46 WIB

The producer price index rose a modest 0.1% in June, indicating that inflation remains muted. Economists polled by MarketWatch had predicted a 0.1% fall. The increase in wholesale inflation over the ...

Consumer inflation edges up 0.1% in June, CPI shows, but price pressures still muted...
Thursday, 11 July 2019 19:54 WIB

Americans paid more for rent, clothes and autos in June, but consumer inflation was largely held in check by falling energy prices. Waning inflation is one of the chief reasons the Federal Reserve is ...

LATEST NEWS
Tokyo Stocks Close Lower as Trade Optimism Fades

Tokyo stocks closed lower on Wednesday tracking falls on Wall Street, as optimism over US-China trade talks receded after recent comments from both sides. The benchmark Nikkei 225 index lost 0.31 percent, or 66.07 points, to close at 21,469.18,...

Gold Prices Turn Lower on U.S.-Iran Talks, Strong Retail Sales Data

Gold prices fell on Wednesday in Asia on reports that the U.S. is set to begin talks with Iran. Retail sales gained 0.4% in June, outpacing consensus forecasts for a 0.1% advance. The data sparked buying interest in the U.S. dollar and pushed...

Oil Prices Near Flat After Falling More Than 3% Overnight

Oil prices were near flat on Wednesday in Asia after slumping more than 3% overnight following news that U.S. President Donald Trump and his administration are ready to start talks with Iran. U.S. Crude Oil WTI Futures last traded at $57.64 by...

POPULAR NEWS
Gold prices settle at nearly two-week peak
Tuesday, 16 July 2019 01:55 WIB

Gold futures edged higher on Monday, settling at their highest in almost two weeks as prices extended recent gains scored on the back of...

Gold prices end lower; silver rallies to highest finish since February
Wednesday, 17 July 2019 02:11 WIB

Gold ended lower on Tuesday as a rise in U.S. retail sales contributed to a stronger U.S. dollar, pressuring prices for the precious metal. The...

Wall St. Leans Neutral/Sideways On Gold Prices, Main St. Bullish
Monday, 15 July 2019 13:42 WIB

Wall Street traders and analysts are undecided or else look for gold prices to be sideways this week, while Main Street remained bullish, according...

Gold Trades Steady Ahead of China GDP Data
Monday, 15 July 2019 09:58 WIB

Gold prices held steady in early Asian trade on Monday, as market participants awaited key economic data from China for cues about the health of the...