LONDON: British businessmen added a record 241,000 staff last month, raised the number of employees at the company payroll to the top of the level before England first entered Covid-19 locking last year, official data showed on Tuesday.
Strong job data emerged as the British government prepared to end the leave program on September 30, which helped around one third of employees at its peak, and last month still supported around 700,000 full-time workers.
Safe! You have managed to throw your Votozin to see the results of the results of Covid19.
British government bond yields rose after data – with two-year benchmarks touched the highest since the beginning of the pandemic – because the numbers revived the question about when the Bank of England might begin to raise interest rates.
Businesses report more than 1 million jobs in three months to August – all-time high, and the unemployment rate fell to 4.6% in three months to July, the National Statistics Office said, in line with the expectations of economists in a Reuters poll.
“The latest data brings more signs that the labor market concessions decrease rapidly and that labor shortages contribute to faster payment growth,” said Ruth Gregory, economist in the economic field.
For three months to July, the number of people in work, which includes entrepreneurs and employees, rose 183,000 to 32.4 million, widely in line with estimates.
“Today’s statistics show that our plan for work works,” said Minister of Finance Rishi Sunak.
The number of people who work in wider steps is still far below the record of 33.1 million just before the pandemic.
More people are entrepreneurs and more unemployed reports or “inactive” – ​​a category that includes many students, home makers and those who are no longer looking for work.
Record ListenBusiness reported 1.034 million jobs in three months to August, the highest since this record began in 2001.
Vacancies are very high in sectors such as accommodation and food services, which put a lot of workers last year but have seen a boom in demand because of Covid-19 restrictions eased in recent months.
The lack of several major workers such as truck drivers and food processing workers has caused a temporary gap in several supermarket shelves and restaurant menus.
“Lack of supply and ongoing workers inhibit further growth,” said Matthew Percival, Director of People and Skills in the British Industry Confederation.
The CBI and other business groups have been calling for the government for a while relaxing new post-Brexit immigration rules when they train new workers.
Businesses report payment pressures increases sharply.
The official data on Tuesday showed average weekly revenues in three months to July was 8.3% higher than the previous year, just below the highest of 8.8% for three months to July.
ONS said this decent increase should not be taken at a nominal value because low paid jobs are more likely to have been cut for the past year, and fewer people are now reducing leave salaries.
Pay bonuses did not include 6.8% YoY in three months to July, and ONS said the actual fundamental level might be between 3.6% and 5.1% – still high with pre-pandemic standards.
The English labor market offers challenges for BOE while trying to assess how constantly inflationary pressure and supply chain congestion tends to.
Last month, half the BoE policy maker considered that some basic conditions for the increase in interest rates had been fulfilled, but others emphasized there were significant slack in the labor market.
Gregory from Capital Economics said he hoped for lack of labor will be temporary.
“The danger is that they last longer than we expected, causing remains high inflation and British banks to withdraw the trigger of the interest rate next year,” he added.
The price of financial markets in the first interest rate increase became 0.25% from 0.1% in May, while economists were surveyed by the average average view at the end of 2022.