Dreadful UK Jobs Report Questions Need for Rate Hikes

The latest UK jobs report shows a rise in unemployment to 5.0% and a sharp decline in wage growth to 0.6%, questioning the necessity of further Bank of England rate hikes.

Key Takeaways

• 1.The UK unemployment rate has increased to 5.0%, and payrolled employment saw a significant drop of 100,000.
• 2.Private sector wage growth has slowed dramatically to a 0.6% three-month annualised rate, the lowest since 2015.
• 3.While a June Bank of England rate hike remains the base case, the weak data makes the decision a 'close call'.

Table of Contents

• Payroll employment has been particularly weak in consumer services
• Wage growth is slowing rapidly
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