'Glimmer of hope' for UK jobs market
|The UK jobs market continues to cool on the back of the government’s business tax raid, but this morning’s report offered some mild respite and a glimmer of hope that there may yet be light at the end of the tunnel, however faint.
A smaller drop in payrolled employment in July offers a crumb of comfort, albeit this still extended the worst streak of contractions in jobs on record, outside of the pandemic.
Thankfully, the ascent in the unemployment rate has halted and claims for jobless benefits unexpectedly dropped for the second straight month.
While the worst of the jobs market downturn may be behind us, we are far from out of the woods just yet.
Hiring remains fragile as businesses continue to come to terms with the higher costs associated with the recent hike to National Insurance and the minimum wage, not to mention the uncertainty surrounding US tariffs.
Households are also continuing to be squeezed by the drop in real income growth, which is now at a two-year low. This presents a challenging environment for the UK economy, which looks set to post only modest growth in the second half of the year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.