by The British job market has continued to cool down as the vacancies fell and the number of people on the payroll fell, the last official figures suggest.
Vacancies fell by 5.8% to 718,000 between May to July in almost all industries, according to the Office for National Statistics (us).
It said there were indications that some companies may not recruit new employees or replace people who have left.
However, the delay was not as sharp as some economists had expected.
The average wage growth remained at 5%, the unemployment rate was unmoved at 4.7% and an estimated fall in people on wage lists – Down 8,000 between June and July – meant a “very gradual cooling”, according to the former Bank of England policy maker Andrew sentence.
He pointed out that there are more than 30 million people at employers’ institutions in the UK.
Ashley Webb, British economist for Capital Economics, said that the “modest fall” in wage data “suggests that the failure in the job market of the rise in business tax and the minimum wage” calm down.
In April the national living wage rose from £ 11.44 to £ 12.21.
At the same time, the contribution of national insurance by employers increased from 13.5% to 15%, while the salary threshold that caused the payment was reduced from £ 9,100 a year to £ 5,000.
[BBC]
Although the number of vacancies fell, it did not continue to increase the unemployment rate, Mr Webb said.
He added that companies were “relatively modest” in July.
Monica George Mikhail, associated economist at the National Institute of Economic and Social Research, said that the decrease in vacancies would probably contribute to delaying wage growth.
This is one of the economic indicators that the Bank of England is looking at when making decisions about changing the interest rates, because it can feed or cool down inflation.
The bank’s inflation objective is 2%, but the pace of the price increases has grown in recent months due to higher food and energy costs.
Mrs Michail predicted that the bank would lower the interest rates again this year, which predicts that the loan costs will fall from 4% to 3.75% in November.
[BBC]
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