Jobs
UK Labor Market Softens Even as Wages Continue to March Higher
- Fall in inactivity suggests labor shortages may be easing
- Average earnings growth at almost 7% will worry central bank
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The UK labor market showed fresh signs of cooling in a boost for bets that interest rates are close to peaking, although accelerating wage growth remained above the Bank of England’s comfort zone.
The number of payrolled employees fell 136,000 in April, the first drop since February 2021, the Office of National Statistics said Tuesday, adding that the figure was subject to revision. Meanwhile, worker inactivity decreased, with 156,000 people rejoining the job market.