UK labor market data released today showed further cooling, reinforcing expectations that the BoC would deliver another rate cut in December.
In October, Payrolled employment fell -0.1% mom, or -32k, while claimant count rose 29k, exceeding expectations of a 20.3k rise. Wage pressures also eased significantly. Median monthly pay grew just 3.1% yoy, sharply down from 5.9% previously and marking the weakest pace since mid-2020.
In the three months to September, unemployment rate climbed from 4.8% to 5.0%, the highest in four years. Average earnings growth slowed from 5.0% yoy to 4.8% including bonuses, and from 4.7% yoy to 4.6% excluding them. Both readings highlight that the pay cycle is losing momentum as inflation falls and labor slack builds.
