Pound Sterling slumps as UK job market deteriorates further
The Pound Sterling (GBP) falls sharply against its major currency peers on Tuesday. The British currency weakens as the United Kingdom (UK) labour market data for the three months ending September has signaled that job market conditions have deteriorated further.
The Office for National Statistics (ONS) has reported that employers laid off 22K workers, compared to a fresh addition of 91K recorded in the three months ending in August. This is the first time the overall labour force has seen a reduction in employees since the three months ending in March 2024.
Additionally, the ILO Unemployment Rate has accelerated to 5%, faster than estimates of 4.9% and the prior reading of 4.8%. This is the highest level seen since March 2021.
Signs of weakening job market are expected to prompt expectations of an interest rate cut by the Bank of England (BoE) at its December policy meeting.
This week, BoE dovish expectations for the December meeting have already accelerated as the central bank eliminated “careful” from their “gradual monetary easing guidance”, while announcing the Monetary Policy Statement last Thursday.
Meanwhile, Average Hourly Earnings Excluding Bonuses, a key measure of wage growth, rose at a moderate pace of 4.6% on an annualized basis, as expected, compared to a 4.7% growth seen in the three months ending August. In the same period, Average Earnings Including Bonuses rose at a slower pace of 4.8%, compared to estimates of 4.9% and the prior reading of 5%.
Source : Fxstreet.com
