UK wages are now growing at their fastest rate since 2009

The UK just released labour market data for July, and unemployment unexpectedly fell

The unemployment rate came in at 5.5, the lowest since 2008.

Wages rose by 2.9%, the largest increase since 2009.

Analysts were expecting wages excluding bonuses to rise by 2.9% year-on-year, and for the unemployment rate to stay static at 5.6%.

It certainly looks like something different is now happening in the UK labour market, following two years of pretty rapid declines in unemployment, and a strengthening employment rate.

In fact, in the second quarter of the year, the UK employment rate shrank, giving it one of the worst performances in the European Union:

That could be a sign that the UK’s reaching roughly full employment, and would also go some way to explaining the stronger wage growth we’ve been seeing too.

NOW WATCH: Animated map renames states for countries with similar GDPs

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.