UK jobs market lost some of its heat in July - survey
Vacancies and starting salaries in the UK fell in July for the first time this year, indicating a decrease in inflationary pressure in the labor market.
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Posted 8/20/2023, 11:11:00 PM
reuters.com
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The number of job vacancies in the US dropped in July, indicating a cooling labor market that could alleviate inflation, while fewer Americans quit their jobs and consumer confidence in the economy decreased, potentially impacting consumer spending; these trends may lead the Federal Reserve to delay a rate hike in September.
US job openings fell to the lowest level in nearly 2.5 years in July, indicating a gradual slowdown in the labor market and increasing expectations that the Federal Reserve will not raise interest rates next month.
The US jobs data for July suggests a cooling employment market, with a drop in labor demand and easing of hiring conditions, which could help lower inflation without a significant rise in unemployment rates.
Job openings and layoffs decreased in July, indicating a return to pre-pandemic labor market patterns, with economists attributing the drop to a decline in turnover rather than contraction.
Wage growth in the UK has caught up with rising prices, resulting in real pay no longer falling, according to official figures, although the unemployment rate has risen and job vacancies have fallen. The data will also impact the state pension, which is set to increase by 8.5% next April.
The UK's GDP has contracted more than expected in July due to strikes, adverse weather, and a decline in retail trade, with a 0.5% decrease, although the broader picture indicates growth across various sectors; meanwhile, wages have risen by 7.8% and unemployment has increased to 4.3%.
UK inflation unexpectedly fell in August to 6.7%, easing pressure on the Bank of England to raise interest rates, with falling prices for hotels and air fares offsetting the rising cost of fuel.