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.
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