UK employment growth slowed to 83K in June, below expectations, while wage growth accelerated, pressuring the British Pound.
The British Pound (GBP) fell against the Japanese Yen (JPY) to near 215.95 after UK labor market data showed weaker-than-expected job creation. The economy added 83K jobs in the three months to June, down from 147K in the prior quarter and below forecasts.
The ILO Unemployment Rate held steady at 4.9%, slightly above the anticipated 4.8%. However, wage growth accelerated, with Average Earnings Excluding Bonuses rising 3.5% YoY, up from 3.4% previously. Including bonuses, wage growth matched projections at 4.1%, though this was slower than the revised 4.4% prior reading.
Markets now await Wednesday’s UK Consumer Price Index (CPI) data, which is expected to show headline inflation rising to 2.9% YoY from 2.6%. The outcome could influence Bank of England (BoE) policy expectations, with strategists currently forecasting steady rates through year-end.