UK labour market data, September 2016 - PwC comments

Published at 10:24 AM on 14 September 2016

In response to today’s UK labour market figures, John Hawksworth, chief economist at PwC, commented:

“The unemployment rate remained unchanged at 4.9% in the three months to July as compared to the three months to June, showing no immediate impact from the Brexit vote. The unemployment benefit claimant count did rise slightly in August, reversing a small decline in July, but the broad trend has been flat in recent months.

“Average earnings growth eased slightly in the latest three month period, but remains at just over 2%, seen for much of this year. Real earnings growth remains positive at around 1.5% excluding bonuses, though we expect this to slow over the next year as consumer price inflation picks back up towards its 2% target rate.

“Overall, the latest labour market data suggest some cooling down of the rapid pace of UK jobs growth seen in the period before the referendum, but with no indication yet of a significant rise in unemployment. This is consistent with other broadly reassuring economic data for the post-referendum period, which point to a moderation of growth rather than a recession.

“However, unemployment tends to be a lagging indicator, as companies will take time to adjust their hiring plans to the post-referendum world. So it will be some months before we can reach firm conclusions on the labour market impact of the Brexit vote.”

Ends.

For further information please contact Tilly Parke: [email protected] / +44 20 7804 8761


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