UK May ILO unemployment rate 4.7% vs 4.6% expected | Forexlive

• Prior 4.6%
• Employment change 134k vs 46k expected
• Prior 89k
• Average weekly earnings +5.0% vs +5.0% 3m/y expected
• Prior +5.3%; revised to +5.4%
• Average weekly earnings (ex bonus) +5.0% vs +4.9% 3m/y expected
• Prior +5.2%; revised to +5.3%
• June payrolls change -41k
• Prior -109k; revised to -25k

The jobless rate continues to tick higher, coming in just above estimates this time around. That is the highest reading since 2021 and alongside further softness in payrolls in June (despite a better revision to May), it still sets the BOE on the path towards cutting rates. That despite inflation pressures continuing to prove to be a bit of a sticking point.

The good news for the BOE is that they can at least take some comfort in easing price pressures once more. Real wages are seen declining further with total pay seen at 1.0% and regular pay at 1.1% in the three months to May. Those are the lowest readings since the middle of 2023.