Wednesday, September 16, 2009
Unemployment up, earnings growth down
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

Unemployment rose, as expected, but the Labour Force Survey measure remained just under the 2.5m level, at 2.47m, and the rate rose from 7.8% to 7.9%, just short of the expected 8%. The claimant count continued the pattern of relatively small rises, the claimant count increasing by 24,400 to 1.61m, or 5% of the workforce.

There were one or two other mildly encouraging figures in the release. Redundancies in the three months to July were 246,000, down 55,000 on the previous three months. Vacancies edged up marginally in August.

Earnings growth excluding bonuses slipped from 2.5% to 2.2%, the lowest in the current run of data, which stretches back to 2001. Including bonuses, earnings rose by 1.7%. Flexibility on wages looks to be limiting the rise in unemployment. More here.