Economic Indicators

Today’s Stock Market News – The number of European Union workers in the U.K. fell by the most on record

The number of European Union workers in the U.K. fell by the most on record, intensifying labor shortages as Britain prepares to leave the bloc next year.

StockMarketNews.Today

 


Brexit Woes Evident in Labor Market as EU Workers Fall by Record. There were 2.25 million EU nationals employed between July and September, 132,000 fewer than a year earlier, the Office for National Statistics said on Tuesday. In contrast, the number of non-EU workers in Britain grew by 34,000 to 1.24 million, the ONS said.

Not Working. The number of EU nationals working in the U.K. has fallen by a record



The data comes at a time when U.K. Prime Minister Theresa May said talks with EU for a divorce deal are in the “endgame,” but there’s no clarity on how Britain’s job market will shape up once the country exits the bloc on March 29. In a sign that there’s no spare capacity in the labor market, U.K. wage growth accelerated to the fastest since 2008, with productivity remaining subdued.
For the latest three month period, there were 881,000 people working in the U.K. from the eight East European countries that joined the EU in 2004, 154,000 fewer than a year earlier, according to the report.

 

More News on U.K. Economy: U.K. wage growth accelerated to a near 10-year high, backing the Bank of England’s view that there is now no spare capacity in the labor market.

Average earnings excluding bonuses rose 3.2 percent in the three months through September from a year earlier, the most since December 2008, the Office for National Statistics said Tuesday. Unemployment unexpectedly rose from a 43-year low to 4.1 percent.



Brexit-related labor shortages are becoming evident with 132,000 fewer European Union nationals working in Britain than a year earlier. The record decline was driven by citizens of the eight countries that joined the EU in 2004 including Poland and Hungary.



In a sign of a tight labor market, the number of hours worked climbed by 1 percent in the third quarter. Vacancies hit a record high in the three months through October
Pay is rising fastest in the private sector (3.3 percent versus 2.8 percent for government workers) but easing of austerity should see public sector start to catch up. Wage growth including bonuses accelerated to 3 percent.

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