The British labor market showed signs of weakening in February and March, even if wage growth has remained strong, highlighting the challenge facing the Bank of England when the economy is preparing for the impact of American prices.
Payroll employment fell 8,000 between January and February according to tax data published on Tuesday. The preliminary figures for March indicated a greater drop of 78,000, or 0.3% of those from employment to pay, before the introduction this month of national insurance contributions for higher employers in the October budget.
The vacant posts fell below the pre-countryic levels for the first time since spring 2021.
Separate data from National Statistics Office has shown that the annual growth in average weekly profits, excluding premiums, was 5.9% in the three months and February, compared to 5.8% in the three months to January. Economists had scheduled an increase of 6%.
THE Bank of England Look closely at employment data after recent commercial surveys reported a sharp drop in employment after the budget. The national decent salary has also increased this month.
The figures occur in a strong uncertainty for British companies after the decision of the American president Donald Trump on April 2 to impose import rates on the goods of most countries.
British exports are now facing an import rate of 10% in the United States, disturbing economic prospects. The financial markets are prices in a drop in the rates of the Bank of England in May, with expectations of two other discounts by the end of the year.
Liz McKewn of ONS said that wage growth has accelerated in the public sector “as previous remuneration fully increases to our figures, while salary in the private sector has changed little”.
