- Average earnings (incl. bonus) increased by 4.5% from April to June 2024, compared to a 5.7% rise from March to May 2024.
- Job vacancies fell by 26k in the quarter but remained above pre-pandemic levels.
Bank of England Monetary Policy Implications
The unexpected drop in the UK unemployment rate could impact investor bets on a Q4 2024 Bank of England rate cut.
Tighter labor market conditions could support wage growth, boosting disposable income, and consumer spending. Higher consumer spending may fuel demand-driven inflation, pressuring the BoE to leave rates higher for longer.
The fall in the unemployment rate overshadowed the wage growth trends and their influence on the BoE rate path.
GBP/USD Response to the UK Labor Market Data
Before the June UK labor market report, the Read More