Investing.com - A solid U.K. jobs report released Tuesday strengthened the case a gradual tightening of monetary policy by the Bank of England, as both employment and earnings growth came in a little above expectations.
The unemployment rate fell to 4.0% in November, beating expectations for it to hold steady at 4.1%.
Advertisement: High Yield Savings Offers
The number of people in employment in the U.K. rose 141,000 in the three months to November, hitting a record high of 32.54 million. Economists had expected an increase of just 88,000.
Average earnings, excluding bonuses, rose by an annual 3.3% in the three months to November, matching consensus for it to hold steady at the prior reading.
Including bonuses, pay growth rose by an annual 3.4%, above expectations for no change from October’s 3.3% increase. That was the fastest pace since July 2008.
The Bank of England has pointed to rising wages and their upward pressure on consumer price inflation as part of their argument for the need for gradual rate hikes.
Markets expect one increase this year, but escalating uncertainty with regard to the outcome of Brexit negotiations with the European Union has kept the BoE on hold as it fears the possibility that an abrupt exit with no deal could hit both economic growth and affect inflation.
Related Articles
U.S. labor market remains strong, economy slowing
Mexican economy grows 0.4 percent in November from October
U.S. Jobless Claims Fall Below 200,000 for First Time Since 1969