The slowdown in the British economy pummeled the UK’s employment rate at its fastest pace in four years. Pay growth fell back in 2019’s third quarter.
Reports claim the slowdown may increase the chances of an interest cut from the Bank of England.
The UK employment rate fell by 58,000 from July to September 2019, lower than the expected 102,000. Still, the country saw its biggest annual fall since the financial crisis in 2008.
Brexit Slows the Employment Rate Down
Figures from the Office for National Statistics claimed the Brexit uncertainty hit the country’s employment rate. The data shown added to the debate over the economy as the December 12 election approaches.
The unemployment rate fell from 3.9% to 3.8% in September, but this only emphasized the sharp monthly employment drop.
The chief economist of the Institute of Directors, Tej Parikh, said elevated costs and difficulties “raised their productivity game.” He claims wage acceleration seems unlikely now.
The odds of a BoE interest rate cut could increase as economists anticipate Wednesday’s UK consumer price index data. If inflation continues to fall under the 2% goal, this could potentially be the cause for a 2020 cut.