U.S. unemployment rises to 207, 000, jobs report shows

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U.S. unemployment rises to 207, 000, jobs report shows

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None They created the must-have instrument for the Burning Man Set. British companies pushed the number of workers on payrolls above pre-coronavirus levels last month, an indication of strength in the labor market that could embolden the Bank of England to raise interest rates.

Payrolls climbed by a record 207,000 figures in the last month of the U.K. tax authority data. Separate figures from the Office for National Statistics showed that job vacancies rose to 1.2 million, which was also an all-time high.

The figures suggest a robust recovery in employment is likely to absorb many of the 1 million workers who remained on furlough as government ended the program last month. Policy makers on the Central Bank s Monetary Policy Committee are scrutinizing the data as they weigh when to raise rates, with financial markets pricing in December in a move in December.

The recent hawkish tone by MPC members suggests inflation concerns are now front of mind, which means lowering the bar for rate increases, said Hussain Mehdi, macro and investment strategist at HSBC Asset Management. A decent October jobs report could open the door to hikes as soon as the December meeting. Payrolls were driven by hiring in the hospitality industry and employment agencies.

In the three months up to August, underlying wage growth rose to between 4.1% and 5.6%, well above the 3% it prevailing before the pandemic. That indicates price pressures in the economy that have started to concern the central bank. Policy makers have warned that inflation will rise later this year, double their target and will likely prompt a tightening of monetary policy.

The number of people in work was 235,000 in the three months to August, the biggest increase since 2015 for the population alone. The unemployment ticked down by 4% from 4.6% to 4.5%.

Chancellor of the Exchequer Rishi Sunak welcomed the figures as evidence that the government programs to get people back to work are succeeding.

It s very encouraging to see our Plan for Jobs working - - the number of expected redundancies in September remained very low, there are more employees on payroll than ever before and the unemployment rate has fallen for 8 months in a row, Sunak said in a statement.

The payroll data are among the most up-to-date information available to BOE policy makers, with the broader unemployment numbers from the ONS carrying a longer lag.

The first look payrolls at data following the end of the furlough comes on Nov. 16, more than a week after the next BOE meeting. Official unemployment numbers for October won t be published until Dec. 14, two days before the final decision of the BOE.

The U.K. labor market has been plunged into the spotlight in recent weeks, as a number of high profile shortages in key areas led to supply chain chaos and concerns about a spiral in wages and prices.

While that will be a concern for policy makers at the BOE, Prime Minister Boris Johnson has painted it as a positive story for Britain, casting it as part of the economy s transition away from the European Union.

The recovery is testing the capacity of the economy to adapt to a new post-pandemic environment, a task made more difficult by the limited availability of overseas workers, said Yael Selfin, chief economist at KPMG UK.

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