Job Starts Decline to Lowest Level in Five Years
The number of individuals beginning new employment has dropped to its lowest point in five years, according to recent data, as job vacancies continue to decrease.
The Office for National Statistics (ONS) reported that although the labour market remains "broadly stable," certain sectors are exhibiting signs of weakening.
Liz McKeown, the ONS's director of economic statistics, stated, "the further drop in job vacancies suggested that firms are becoming more cautious about taking on new staff."
Unemployment and Wage Growth
The unemployment rate slightly decreased to 4.9% in the three months leading to April, down from 5% in the preceding three months to March.
Regular pay, excluding bonuses, increased at an annual rate of 3.4% in the three months to April, consistent with the growth rate observed in the three months to March.
This indicates that average earnings are rising marginally faster than inflation.
However, McKeown noted that wage growth in the private sector is expanding at its slowest pace in five and a half years.
Context Ahead of Bank of England Decision
These statistics were released prior to the Bank of England's interest rate decision scheduled for later on Thursday. Analysts generally anticipate that the Bank will maintain its key interest rate at 3.75%.
Ben Caswell, a senior economist at the National Institute of Economic and Social Research, commented on the data, indicating a gradual easing in the labour market.
He said, "Alongside yesterday's softer inflation figures and the tentative agreement to reopen the Strait of Hormuz, this gives the Bank of England the final green light to vote for a hold this afternoon."
