U.K. Labour market report for June showed wages somewhat on the soft side, as bonuses contracted 17%, pushing headline average weekly earnings (AWE) down below expectations. Excluding bonuses, AWE were just in line with expectations (see June UK labour market report: 'somewhat ambiguous signals', 12 August 2015).
Meanwhile, the moderation in job creation continued, with the average monthly drop in claimant count just 2k over the past three months, against 16k in the previous three.
"The report was clearly one for the doves and reminded the recovery in the labour market could disappoint. In particular, the rebound in inflation at the end of the year will weigh on real wages if nominal wages do not accelerate accordingly", states Barclays.
The July claimant count now points to a stable unemployment rate at 5.6% for the third month in a row.
