BOE Must Be Giddy Looking at UK Employment Data!

<p>&nbsp;Warmth in UK wage growth continued to pick up in July despite growing signs that the labor market is slowing.</p><p><br /></p><p>The latest data released at the start of the European session saw the UK unemployment rate rise to 4.3% in the three months to July from 4.2% previously.</p><p><br /></p><p>It is the highest figure recorded since September 2021, according to the Office for National Statistics (ONS).</p><p><br /></p><p>Employment was reported to have fallen by 207,000 more than expected which was the biggest fall since the three months to October 2020.</p><p><br /></p><p>Despite this, wage growth continued to show an increase to 8.5% year-on-year during the period, exceeding the current inflation rate of 6.8%.</p><p><br /></p><p><br /></p><p>This caused investors to be divided on the next expectation of the steps to be taken by the Bank of England (BOE).</p><p><br /></p><p>The central bank will meet on Thursday next week, a day after the release of UK inflation data.</p><p><br /></p><p>With the labor market slowing, and wage inflation rising, it will certainly be difficult for the BOE to make a decision.</p><p><br /></p><p>However, investors will scrutinize the next data, UK gross domestic product (GDP) to be published in the European session tomorrow.</p><p><br /></p><p>Initial currency reactions showed the pound little changed with the price remaining flat at around 1.25000 against the US dollar.</p>