UK labour market is quite confident, despite worsening of total economic outlooks. According to data released on Wednesday, unemployment went down and wages grew.
The ONS released on Wednesday a report that shows reduction of unemployment by 28,000 people during November-January, and growth of average wage without bonuses by 2.2% against 2% in September-December.
Total unemployment remained at 5.1%. Last time unemployment crossed this level in 2006.
Data about labour market were released on the day when UK Finance Minister George Osborne gave a report about budget and forecasts before the parliament. Mr Osborne reiterated that economy would be under threat of too many risks this year that could hit its stability and budget. Among these risks are: slowdown of emerging-market countries and geopolitical instability in the Near East. According to the latest economic indices, economic growth in the UK slowed at the beginning of this year after the Britain took the second leading economic growth among G7 in previous year.
Acceleration of wages echoes strengthening of inflation, although its paces remain weak. Annual inflation rose in December by 0.3% and this is too far from required 2%.
The BOE states that it hopes to see more significant growth of wages before discussion about a rate hike comes on the agenda.
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