Investing.com — The UK labour market showed mixed signals in May, with some indicators pointing to stabilisation while others continued to weaken, according to data released Thursday, ahead of Bank of England rate decision.
PAYE payroll employment increased by 2,000 in May, partially offsetting a 53,000 decline in April, which was revised up from an initial estimate of 100,000. Payroll employment remained 64,000 lower than levels before the start of the Iran war and 0.4% below year-ago levels.
Job vacancies continued to decline, falling to 709,000 in May from 716,000 in April on a single-month basis. The three-month average dropped to 707,000 from 709,000. The claimant count rose by 31,200 in May, marking the largest increase since July 2024.
The Labour Force Survey showed employment rose by 100,000 in the three months to April, exceeding the consensus forecast of 75,000. The unemployment rate fell to 4.9% in the three months to April from 5.0% in the three months to March, below the consensus expectation of 5.0%. The single-month unemployment rate dropped to 4.6% from 5.4%.
Average earnings growth remained at 4.4% in April on a three-month year-on-year basis, revised up from an initial reading of 4.1%. Excluding bonuses, pay growth held steady at 3.4%, above the consensus estimate of 3.2%. Private sector pay growth eased to 2.9% from 3.1%, while public sector pay growth accelerated to 5.1% from 4.8%.
Capital Economics maintained its forecast that the Bank of England will keep interest rates at 3.75% at its meeting Thursday and throughout 2026.
Source:
www.investing.com
