UK Labour Market: Showing Resilience

February employment rate came in at 75.1%, up slightly on the three months to January
Unemployment rate remained unchanged at 4.4% in February in line with market expectations of 4.4% (Trading Economics)
Economic Inactivity in the three months to February came in at 21.4%, slightly down from 21.5% in the three months to January.
Annual wage growth came in at 5.6%, versus 5.6% in the three months to January and market expectations of 5.7% (Trading Economics)
Isaac Stell, Investment Manager at Wealth Club, commented;

“The UK Labour market continued to show resilience during February with little change in the headline employment figures from January. The stability in these latest figures will be welcome news for the Government, as, for the time being, the threats of job cuts following the rise in national insurance costs has yet to come to fruition.

Average wage growth continues to outpace inflation, holding firm at 5.6% (including bonuses) in February. More good news for the Government as wages continue to rise despite the negative economic mood music and warnings of stagnant wage growth from businesses due to tax rises.

The key challenge for the Government will be ensuring the resilience in the labour market and wage data endures despite the bumpy road ahead. Today’s positive figures must not breed complacency as they are yet to account for the higher employment taxes that came into effect this April. The hike in taxes will ultimately impact the bottom line for many businesses and the implications on wage growth and employment could be far reaching.”