Weak UK labor-market data ahead of the Bank of England's Thursday rate decision
showed employer layoffs in August exceeded expectations. The ONS said payroll
employment fell 26,000 in August, after a revised 19,000 decline in the prior
month, versus economists' expected fall of 5,000. Labor demand remains weak:
vacancies dropped 8,000 to 702,000, a five-year low. The three-month
unemployment rate to July held at 4.9%, though the ONS warned estimates are
affected by data-collection quality issues. ONS said the figures are consistent
with what Bailey has called a “low hiring, low firing” economy. Employers cited
added uncertainty from the US–Iran conflict and Prime Minister Burnham's budget
due October 28.
