The latest data from the Office for National Statistics revealed a record high in the payrolls number
The number of workers on companies’ books increased by the most on record – 207,000 – from August, with the increase coming shortly before the government’s wage subsidies scheme ended. According to data, employers turned to recruitment agencies to find staff, while hotel and food firms created jobs as they recovered from pandemic-induced lockdowns.
In a separate report, the country’s unemployment rate decreased to 4.5% from 4.6% previously reported, coming in line with expectations.
The latest numbers are essential as the Bank of England is preparing to become the first major central bank to hike rates since the pandemic started. Moreover, inflation is heading towards 4%, double the target.
The pay growth is also monitored, as the BoE tries to measure how persistent a recent jump in inflation could be. For the June-August period, weekly earnings jumped 7.2% compared to the same period a year ago.
Inflation has already started to impact investor sentiment, weighted by higher energy costs, supply chain disruptions, and a decline in mining and banking stocks. At the moment of writing, UK100 was 0.47% lower.
Sources: investing.com, reuters.com