The UK government is preparing to end its furlough program on 30 September, which has helped nearly one-third of workers at the highest level and is still providing full-time support to around 700,000 workers last month.
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Tuesday’s figures mark an uptick from weak economic data from July, when the pace of Britain’s recovery slowed as thousands of workers had to stay home after being informed of contact with people tested positive for Covid-1 for. The data has boosted British government bond yields – the two-year benchmark has touched its highest since the onset of the epidemic – as figures have revived questions about when the Bank of England could start raising interest rates.
In line with economists’ expectations, the Office for National Statistics said businesses reported more than 1 million vacancies in the three months to August – the all-time high, and the unemployment rate fell slightly to 4.6%. A Reuters poll.
“Recent data further indicates that labor market sluggishness is rapidly declining and labor shortages are contributing to rapid underlying wage growth,” said Ruth Gregory, an economist at Capital Economics.
In the three months to July, the number of employees in employment, including self-employed and employees, increased by 183,000 to 32.4 million, in line with the forecast.
Finance Minister Ishii Sunak said today’s figures show that our plans for the job are working.
The number of people working on this broad scale was just below the record 33.1 million before the epidemic. Fewer people are self-employed and more unemployed or “inactive” – a category that includes many students, homeowners and those who are no longer looking for work.
Record the emptiness
Businesses reported 1.034 million vacancies in the three months to August, the highest since these records began in 2001.
There were vacancies, especially in the housing and food services sectors, which laid off many workers last year, but demand has increased in recent months as the Covid-1 restrictions have been relaxed.
The lack of some key staff such as truck drivers and food processing staff has created temporary gaps in some supermarket shelves and restaurant menus.
“Continued supply and labor shortages are hindering further growth,” said Matthew Percival, director of people and skills at the British Industry Confederation.
The CBI and other business groups have been urging the government to temporarily relax post-Brexit immigration rules as they train new staff.
Traders say wage pressures are rising rapidly. Official data on Tuesday showed that the average weekly earnings for the three months to July were 8.3% higher than the previous year, below the all-time high of 8.8% for the three months from July.
The ONS said these huge increases should not be taken on a price basis because lower-paying jobs were more likely to be cut than last year, and now fewer people were on furlough salaries.
Wages excluding bonuses rose 6.8% year-on-year in the three months to July, and the ONS said the actual underlying rate was probably between 3.6% and 5.1% এখনও still higher by pre-epidemic standards.
The UK job market poses a challenge for the BoE as it seeks to judge how continued inflationary pressures and supply-chain disruptions can occur.
Last month, half of the BoE’s policymakers judged that some basic conditions for rate hikes had already been met, but others stressed that there was still significant sluggishness in the job market.
Gregory of Capital Economics said he hoped the labor shortage would be temporary.
“The danger is that they last longer than we expected, leading to higher inflation and the Bank of England pulling interest rates next year,” he added.
Financial market prices rose 0.25% at first rate from 0.1% in May, while economists obtained by Reuters see an average of one towards the end of 2022
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