- The average salary (including bonuses) increased by 4.5% from April to June 2024, compared to an increase of 5.7% from March to May 2024.
- Job openings fell by 26,000 in the quarter but remained above pre-pandemic levels.
Consequences of the Bank of England’s monetary policy
The unexpected drop in the UK unemployment rate could impact investors’ bets on a Bank of England rate cut in the fourth quarter of 2024.
Tighter labor market conditions could support wage growth, which would boost disposable income and consumer spending. Higher consumer spending could fuel demand-pull inflation, pushing the BoE to keep rates elevated for longer.
The fall in the unemployment rate has overshadowed wage growth trends and their influence on the path of BoE rates.
GBP/USD response to UK labour market data
Ahead of the June UK labour market report, GBP/USD fell to a low of $1.27567 before rising to a high of $1.27818.
However, following the release of the UK Labour Market Outlook report, GBP/USD rose from $1.27799 to a post-report high of $1.28048.
On Tuesday, August 13, GBP/USD was up 0.37% at $1.28043.
