UK jobs hit record high as Bank of England considers first post-pandemic interest rate hike
October 12, 2021, 6:28 am

UK jobs hit record high as Bank of England considers first post-pandemic interest rate hike

UK-London-Bank/Pixabay

The Reuters, British employers took their payrolls to a record high in September, shortly before the end of the government’s wage subsidies programme, potentially encouraging the Bank of England’s progress towards a first post-pandemic interest rate hike.

According to Reuters, data showed the biggest month-on-month increase in the number of employees on companies’ books, up by 207,000 from August, as employers turned to recruitment agencies to find staff and recovering accommodation and food firms created jobs.

Separate official data showed on Tuesday that the unemployment rate edged down to 4.5% in the three months to August from 4.6% in the May-July period, as expected by economists in a Reuters poll.

The BoE, which is gearing up to become the first major central bank to raise rates since the coronavirus crisis struck, is watching to see how many people became unemployed after the end of the furlough programme.

Around 1 million people are likely to have been on the scheme when it ended on Sept. 30, according to an estimate by the Resolution Foundation think tank.

Hussain Mehdi, macro and investment strategist at HSBC Asset Management, said the data left open the possibility of a BoE rate hike before the end of the year.

“The data show an ongoing improvement in the health of the UK labour market, although it’s too early to assess the impact of the end of the furlough scheme in September,” he said.

“However, the recent hawkish tone from Monetary Policy Committee members suggests inflation concerns are now firmly front of mind, lowering the bar for rate increases. A decent October jobs report could open the door to a hike as soon as the December meeting.”

The BoE is also monitoring pay growth as it tries to gauge how persistent a recent jump in inflation is likely to be.

Average weekly earnings were 7.2% higher than in the same three months of 2020, slowing from the previous reading of 8.3%.

Excluding bonuses, earnings rose by 6.0% in the June-August period, also losing some momentum.

The ONS estimated the underlying pace of wage growth, taking into account how job losses during the coronavirus lockdowns affected predominantly lower-paid workers, stood between 4.1% and 5.6% for regular pay in nominal terms.

That compared with regular pay growth of about 3% just before the pandemic hit.

Finance minister Rishi Sunak said the government was committed to helping people find work after the expiry of the furlough scheme.

Source: reuters

Coal price records fresh high in China as floods hit country's key mining regions G20 leaders to discuss humanitarian and security situation in Afghanistan

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”