Wainwright Marks Management - UK Job Market Boosts Economy

In spite of strong indications that the UK economy is facing an economic slowdown, UK wages grew at the most rapid pace in more than a decade during the period from September to November.

According to recent official data released by the Office of National Statistics (ONS), wage growth beat the expectations of Wainwright Marks Management analysts when weekly wages including bonuses increased by 3.4% compared with a year ago. This was the biggest jump since 2008.

Total wages increased at the fastest pace since 2016 after adjusting for inflation but Andrew Miles, Head of Corporate Equity at Wainwright Marks Management says UK citizens are still earning less in real terms than they were before the onset of the 2008 financial crisis.

Although the uncertainty surrounding Brexit could cause businesses to slow their pace of hiring, the data from the ONS revealed that the number of people employed increased by highest number since the beginning of last year during the period from September to November.

With less than two months until the UK is due to leave the European Union and UK Prime Minister Theresa May no closer to securing a deal or clear exit plan, the UK labor market is providing a much needed boost for an economy that is facing an extremely trying period.

The pound gained after the ONS published its findings and although the employment market is largely viewed as a lagging gauge of economic health, Wainwright Marks Management analysts say the recent data will likely boost the confidence of UK policymakers.