Skip to content 
Search

Latest Stories

UK unemployment falls again to lowest since 1975, wage growth still muted

Britain’s labor market outperformed tepid growth in the rest of the economy in the second quarter as the unemployment rate unexpectedly fell to its lowest since 1975, official data showed on Wednesday. 

Sterling jumped nearly half a cent against the U.S. dollar and British government bond prices slid after the jobless rate edged down to 4.4 percent in the three months to June, against expectations for it to hold at 4.5 percent in a Reuters poll of economists. 


Figures on wage growth also came in better than expected but they were flattered by bonus payments in the financial sector. The underlying picture still showed households feeling the strain of rising prices since last year’s Brexit vote. 

“Ongoing anemic earnings growth reinforces the case for the Bank of England to hold off from an interest rate (hike) any time soon – especially given a struggling economy and highly uncertain outlook,” said Howard Archer, chief economic adviser to the EY ITEM Club. 

Inflation has eased slightly since May when it hit an almost four-year high of 2.9 percent, but prices are still rising faster than wages. 

The Office for National Statistics said workers’ total earnings including bonuses rose by an annual 2.1 percent in the three months to June, compared with 1.9 percent in the period to May, boosted by a 27 percent surge in bonus payments in the financial sector. 

Economists taking part in a Reuters poll had expected wage growth of 1.8 percent. 

Overall wage growth in real terms fell by 0.5 percent, the same as in the three months to May and one of the steepest declines in the past three years. 

Excluding bonuses – which analysts say gives a better picture of the underlying trend – earnings in nominal terms rose by 2.1 percent year-on-year, the fastest rate since January and beating expectations for a 2.0 percent rise. 

The Bank of England is watching wage growth closely as it gauges whether the increase in inflation is creating longer-lasting pressure on prices. It expects wages to rise by 2 percent this year before picking up in 2018 and 2019. 

Separate ONS figures showed productivity – perhaps Britain’s biggest economic weak point since the financial crisis – fell by 0.1 percent in output-per-hours terms during the second quarter compared with the first quarter, when it fell 0.5 percent. 

The labor market data suggested no sign of a drop in foreign workers since last year’s Brexit vote. Non-British born people working totaled 5.68 million people in the second quarter, up 262,000 from a year ago.

More For You

Air India flight crash
Air India's Boeing 787-8 aircraft, operating flight AI-171 to London Gatwick, crashed into a medical hostel complex shortly after take-off from Ahmedabad on June 12.
Getty Images

Air India crash probe finds fuel to engines was cut off before impact

Highlights

 
     
  • Fuel to both engines of the Air India flight was cut off seconds before the crash
  •  
  • A pilot was heard questioning the other over the cut-off; both denied initiating it.
  •  
  • The Dreamliner crashed shortly after take-off from Ahmedabad, killing 260 people.
  •  
  • Investigators are focusing on fuel switch movement; full analysis may take months.

FUEL control switches to both engines of the Air India flight that crashed shortly after takeoff were moved from the "run" to the "cutoff" position seconds before the crash, according to a preliminary investigation report released early Saturday.

Keep ReadingShow less
Chinese vessel tracked in Bay of Bengal after disabling identification system

The Indian Navy and Coast Guard have consistently reported Chinese research vessel presence. (Representational image: Getty Images)

Chinese vessel tracked in Bay of Bengal after disabling identification system

A Chinese research vessel was detected operating in the Bay of Bengal near Indian waters while attempting to conceal its presence by disabling its Automatic Identification System (AIS), according to a report by The Economic Times, citing French maritime intelligence firm Unseenlabs.

The French company conducted a 16-day satellite-based survey tracking ships through radio frequency emissions. It monitored 1,897 vessels, with 9.6 per cent showing no AIS activity, indicating attempts to avoid detection. The survey raised concerns amid increased Chinese activity in the region.

Keep ReadingShow less
Asian-inspired garden earns
five awards at Hampton Court

(From left) Malcolm Anderson (RHS, head of sustainability) Clare Matterson (RHS director general), Lorraine Bishton (Subaru UK and Ireland, managing director) Andrew Ball (director, Big Fish Landscapes) Mike McMahon and Jewlsy Mathews with the medals

Asian-inspired garden earns five awards at Hampton Court

BRITISH Asians are being encouraged to take up gardening by a couple who have won a record five medals at the Royal Horticultural Society’s Hampton Court Palace Garden Festival.

“It’s a contemporary reimagining of a traditional walled garden, highlighting the British and Irish rainforests,” said Jewlsy Mathews, who was born in Britain of parents from Kerala, a southern Indian state known for its lush vegetation.

Keep ReadingShow less
uk weather

Amber heat health alerts have been issued across several regions of England

iStock

England faces widespread heat alerts and hosepipe bans amid rising temperatures

Highlights:

  • Amber heat health alerts in place for large parts of England
  • Hosepipe bans announced in Yorkshire, Kent and Sussex
  • Temperatures could reach 33°C over the weekend
  • Health risks rise, especially for elderly and vulnerable groups

Heat warnings in effect as UK braces for another hot weekend

Amber heat health alerts have been issued across several regions of England, with temperatures expected to climb to 33°C in some areas over the weekend. The UK Health Security Agency (UKHSA) activated the warning at 12 pm on Friday, with it set to remain in place until 9 am on Monday.

The alerts cover the East Midlands, West Midlands, south-east, south-west, East of England, and London. Additional yellow alerts were issued for the north-east, north-west, and Yorkshire and the Humber, starting from midday Friday.

Keep ReadingShow less
Essex ladybird invasion

One of the largest gatherings was filmed on a beach at Point Clear

Dee-anne Markiewicz / SWNS

Swarms of ladybirds invade Essex coastline amid soaring temperatures

Highlights:

  • Ladybird swarms reported across Essex and Suffolk coastal towns
  • Hot weather likely driving the sudden surge in population
  • Sightings include Point Clear, Shoebury, Clacton and Felixstowe
  • Similar outbreaks occurred in 1976 during another hot UK summer

Sudden surge in ladybird numbers across the southeast

Millions of ladybirds have been spotted swarming towns and villages along the Essex coast, with similar sightings stretching into Suffolk. Residents have reported unusually high numbers of the red and black-spotted insects, particularly near coastal areas, with the recent hot weather believed to be a major contributing factor.

One of the largest gatherings was filmed on a beach at Point Clear, a village near St Osyth in Essex, where the insects could be seen piling on top of each other on driftwood and plants.

Keep ReadingShow less