U.K. Job Demand Rises Strongly

U.K. demand for workers rose at the fastest pace in 16 years last month, boosting pay growth and supporting the view among a Bank of England minority that it’s time to raise interest rates.

A job-vacancy index increased to 68.2, the highest since 1998, from 68 in July, the Recruitment & Employment Confederation and KPMG said in a report in London today. Average starting salaries for permanent workers rose at a “strong” pace, they said.

The BOE’s nine-member policy committee divided in August, with Ian McCafferty and Martin Weale voting to increase the benchmark interest rate from a record low. They said a continued rapid fall in U.K. unemployment meant it was more likely that wage growth would pick up.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.