UK labour report better than expected – ING

By FXStreet Research Team at ING, notes that the UK labour report was much better than it could have been, although with 1Q job creation around a quarter of what it was at the end of 2015, the effects of referendum-related uncertainty appear to be weighing on employment.

Key Quotes

“The UK labour report was certainly better than it could have been. In the 3 months to March, the economy added 44000 jobs (in fact, the single month increase was around 150k) and unemployment remained broadly flat. This came in above market expectations, given that many had seen a risk of a fall in employment and increase in unemployment as uncertainty surrounding the EU referendum weighs on economic activity.

Survey evidence, not least from the Markit/CIPS PMIs and a recent Deloitte survey, suggests that firms are holding back on hiring/investment until the outcome of the vote becomes clearer. Although this labour report appears to contradict this theory to some extent, it is worth noting that the number of jobs added in the first quarter was less than 25% of the amount added in the last 3 months of 2015.

Although the employment figures were better than expected, wage growth was a little disappointing. The …read more

Source:: FX Street