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UK labour market data points to further cooling in June
The jobless rate held at 4.9% while job vacancies fell to the lowest level in more than five years, which may keep the BOE focused on inflation as policymakers weigh any further rate action.
Forexlive said the latest UK labour market report for June, alongside July payrolls, showed evidence of continued softening in employment conditions. The outlet characterized the data as largely unchanged overall, with the broader trend still pointing to a gradual cooling in the labour market rather than a sharp deterioration.
According to Forexlive, the jobless rate remained at 4.9%, while job vacancies fell to their lowest level in more than five years. The report also indicated that, excluding the Covid pandemic period, vacancies were at the lowest level since late 2014.
Forexlive noted that wage prices look slightly cooler when assessed in nominal terms. It also highlighted that the ONS has faced data quality issues in parts of the labour market reporting, which the central bank will factor into how it interprets the signals.
While the data suggests some slowing in labour market conditions, Forexlive said it is not the kind of report that would automatically rule out another Bank of England rate hike if needed. The outlet added that inflation remains the key metric guiding policymakers.