UK Unit Labour Costs Rise at Fastest Pace Since 2013

British labour costs rose at the fastest annual rate since late 2013 in the three months after the country voted to leave the European Union, despite continued steady growth in productivity, official figures showed on Friday.

Year-on-year growth in unit labour costs – an underlying driver of inflation watched by the Bank of England – edged up to 2.3 percent in the third quarter of 2016 from 2.2 percent in the second quarter, its highest since the last three months of 2013.

Annual growth in output per hour rose to 0.4 percent in Q3 from 0.2 percent in Q2, though this partly reflects volatility in late 2015. Quarterly hourly output growth slowed marginally to 0.4 percent in Q3 from 0.5 percent in Q2.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.