The UK’s labour market figures for April are just out, showing a solid jobs market with increasingly decent wage growth
The unemployment rate stayed at 5.5%. Analysts had expected a small drop in unemployment numbers, but not one large enough to change the overall rate.
Average weekly earnings, the main measure of wage growth, rose by 2.7%, above the 2.1% analysts expected.
With inflation -0.1% in April, the lowest in half a century, real wage growth is at its strongest level in years.
Most official and private forecasts of wage growth over recent years have been ludicrously optimistic in hindsight, but there are signs of some modest pressures building.
Here’s a chart from BNP Paribas indicating that pressure (produced before today’s figures were released):