Introduction
The jobless rate in the U.K. remained unchanged in the three-month period ending in October, while average wage growth experienced a notable decrease. These trends provide some reassurance for the Bank of England as it prepares for its final meeting of the year.
Unemployment Rate
According to data released by the Office for National Statistics on Tuesday, the unemployment rate stood at 4.2% from August to October, maintaining the same level as the previous three-month period. This figure aligns with economists’ expectations, as stated in a poll conducted by The Wall Street Journal.
Average Wage Growth
During the same three-month period, average wage growth, excluding bonuses, eased to 7.3%, down from 7.8% in the July-September period. This figure is slightly lower than economists’ predicted growth rate of 7.4%.
Implications for the Bank of England
Given the cooling wage growth, most economists anticipate that the Bank of England will maintain its current interest rates at the upcoming meeting on Thursday. Policymakers are likely to find reassurance in these trends, as they suggest that efforts to manage inflation are effectively impacting the economy.
