UK unemployment rate probably held at 4.6% - Unicredit

In view of analysts at Unicredit, UK’s average weekly earnings growth excluding bonus payments probably increased to 1.9% yoy in the three months to May but it remains weak and well below its pre-crisis average of around 4%.

Key Quotes

“The weakness in pay growth is consistent with the BoE Agents’ Survey, which found that pay settlements continue to be clustered around 2-2.5%.”

“In contrast, labor market quantities likely remained strong. The unemployment rate probably held at 4.6%, with risks skewed towards a further fall to 4.5%.”