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UK labor data shows steady unemployment, payrolls soften in June
The ONS noted data quality caveats tied to the Labour Force Survey transition, while regular pay growth stays at 3.4%.
UK unemployment held steady in May, keeping the headline jobless rate at 4.9%, according to Forexlive, citing UK Labour Force Survey data. The ONS also flagged that labor market figures this month are subject to data quality issues as the survey transition remains delayed.
Forexlive reported that May employment change was 147,000 versus an 80,000 expected reading, while June payrolls dipped again by 71,000, a 0.2% decline so far this year, after prior revisions. The backdrop points to some softening in the UK labor market, but not enough to raise immediate concerns for the Bank of England.
Pay growth also diverged, with total earnings above 4.0% while regular pay held around 3.4%, after dipping since January. Real pay growth improved to 1.1% from 0.6% in the three months to February, with regular pay remaining subdued at 0.3%, Forexlive added.
Forexlive linked the mixed labor signals to uneven price pressure dynamics, noting that the pay picture now has to be considered alongside a rebound in energy prices amid renewed US-Iran conflict activity.