CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

UK wage growth equals pace seen in ’08 despite tough labour market

UK wages have risen at their fastest pace since 2008 amid tough labour market conditions, according to new data from the Office of National Statistics.

Kyle Rodda KyleR_IG
Market Analyst, Australia

Publication date : 2019-03-18T17:46:30+0000

UK Employment

Source: Bloomberg

Basic wage growth in the UK has increased to a 10-year high between August and October, with the UK employment nearly as low as its lowest rate witnessed in 1975, according to new data from the Office of National Statistics.

In its latest report the ONS said that estimated 32.48 million people in work, 79,000 more than for May to July 2018 and 396,000 more than for a year earlier.

Latest estimates by the ONS also show that average weekly earnings for employees in Britain in real terms (adjusted for price inflation) increased by 1% excluding bonuses, and by 1.1% including bonuses, compared to last year.

Brexit uncertainty weighs heavy on UK economy

‘The October UK jobs data will give the Bank of England a real headache. On the one hand, pay growth keeps improving, but on the other economic growth looks like it’s slowing,’ Dan Hanson of Bloomberg Economics said.

’Given the intense uncertainty about the outcome of Brexit talks, we expect the BOE to sit on its hands until the terms of Britain’s departure from the EU are known.’

Normally, with wage growth improving the Bank of England would look to raise interest rates to reduce inflation, which in turn would help fuel further increases in pay, especially when the latest ONS figures show that average weekly earnings in nominal terms (not adjusted for inflation) increased by 3.3%.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.