The latest employment figures on the whole can be described as pretty solid with the data coming in pretty much inline with expectations. The most pleasing aspect of the report is that the average earnings of 2.5% marks the 5th consecutive month of real wage growth for UK workers, with the CPI for May coming in at 2.4%.
The unemployment rate remains close to its lowest level in several decades but there was a bit a larger than expected increase in the claimant count change.
A 0.1% upwards revision to the prior print means that wage growth did actually fall, but overall the release is in keeping with the recent positive UK data and there’s next to nothing here that will make the BoE more cautious with regards to an August hike.
The pound has moved to its highest level of the day shortly after the release, but the initial market reaction is pretty muted to be honest, with traders likely giving a greater weight to tomorrow’s inflation data.
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