The employment rate came in at 75%, up slightly on the previous quarter.
Unemployment came in at 4.0%, versus 4.1% in the three months to July and market expectations of 4.1% (Trading Economics).
Economic Inactivity fell quarter-on-quarter to 21.8% and annual wage growth came in at 3.8%, versus 4% in the three months to July and market expectations of 3.8% (Trading Economics).
Nicholas Hyett, Investment Manager at Wealth Club, said, “This batch of labour market data could hardly be better from the Chancellor’s point of view. Unemployment and economic inactivity are both down, while employment is up and wages are up by considerably more than inflation. No signs of recession here thank you very much.
True some of that wage growth is just a feedback loop from the lump sums paid to NHS and civil service workers over the summer – but the UK still looks like an economy that’s in reasonably good health and, crucially, able to bare some “painful” higher taxes.
And it’s not just the Chancellor who may feel she’s received a final treat ahead of the Halloween Budget. There will be a sigh of relief from Reeves’ former colleagues on Threadneedle Street too, with the steady decline in wage growth a sign inflation continues to ease.
Fingers crossed tomorrow’s inflation number doesn’t show the UK economy turning into a pumpkin at the worst possible moment.”
