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In the UK, basic pay growth has jumped to the highest rate since records began, while the unemployment rate rose unexpectedly.
Average weekly earnings excluding bonuses rose 7.8% in the three months to June, the highest since records began in 2001, according to the Office for National Statistics. This will add to the Bank of England’s concerns about high inflation.
Total earnings rose 8.2%, higher than the 7.3% growth forecast by economists, boosted by NHS one-off bonus payments made in June.
In another surprise, the unemployment rate increased from 4% to 4.2%, the highest since October 2021. This was driven by people who have been unemployed for up to six months.
The number of employed people declined by 66,000 between April and June, while vacancies were also down. Between May and July, the number of vacancies fell by 66,000 on the quarter to 1.02m.
There were 160,000 working days lost because of labour disputes in June, more than half in the health and social work sector.
The chancellor, Jeremy Hunt, said that the unemployment rate, at 4.2%, was still low by historical standards.
He said: "Our ambitious reforms will make work pay and help even more people into work – including by expanding free childcare next year – helping to deliver on our priority to grow the economy."
Jonathan Ashworth, Labour’s shadow work and pensions secretary, was scathing, though: "These figures confirm once again that the Tories are failing working people and businesses across Britain.
"Families are struggling to get by, there are record numbers of people out of work due to long-term sickness, and the employment rate for over-50s is still below pre-pandemic levels – yet Tory ministers have no solutions to get people back to work. The consequence is thousands written off and a rising benefit bill.
"Only Labour’s plan to build a strong economy will create good jobs and get Britain working again."
The Russian rouble is rising ahead of an extraordinary meeting by Russia’s central bank. It is expected to raise interest rates to prop up the currency, which fell to its weakest level in almost 17 months yesterday.
It took 102 roubles to buy one US dollar at one stage, an almost 2% increase, according to Refinitiv data. That was the weakest level since March 2022. This morning, the rouble has risen to 96.40 per dollar.
The agenda
• 8am UK Kantar grocery price inflation
• 10am BST: eurozone ZEW economic sentiment index for August
• 10am BST: Germany ZEW economic sentiment index for August
• 1.30pm BST: Canada inflation for July (forecast: 3%)
• 1.30pm BST: US retail sales for July (forecast: 0.4%)
We’ll be tracking all the main events throughout the day ... |
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