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The labor market in Great Britain showed signs of weakness in February and March, even when the wage increase remained strong, emphasizing the challenge facing the Bank of England when the economy is preparing for the impact of American tariffs.
Employment in wages fell by 8,000 between January and February, in accordance with tax data published on Tuesday. Preliminary data on March indicates a bigger decrease in 78,000, i.e. 0.3 % of people involved in paying work, before the introduction of higher insurance premiums for higher insurance employers established in the budget of October this month.
Vacancies for the first time fell below pre -standardic levels since spring 2021.
Separate data from the National Statistics Office showed an annual increase in average weekly earnings, excluding bonuses, amounted to five.9 percent in three months to February, in comparison with 5.8 percent in three months to January. Economists forecast a rise of 6 percent.
The Bank of England is fastidiously observing employment data after recent business surveys has signaled a pointy decrease in employment after the budget. The national wage of life has also increased this month.
Numbers appear amongst high uncertainty for British enterprises after the decision of the US President Donald Trump on April 2 to impose import tariffs to goods from most countries.
Export in Great Britain is currently in the face of a ten % import tariff in the USA, clinging to economic perspectives. Financial markets are valued in the reduction of the Bank of England’s rate in May, with the expectations of two further reductions until the end of the 12 months.
Liz McKEWN from ONS said that the increase in salaries accelerated in the public sector “as earlier salaries increased fully transferred to our main numbers, while the remuneration in the private sector was not changed much.”
