UK: Stronger than expected employment growth - TDS

Analysts at TDS explain that this morning's UK labour market data for April was basically in line with consensus overall.

Key Quotes

“There was a small downside miss on one of the wage growth metrics (ex-bonus earnings 2.8% y/y vs mkt 2.9%), but employment growth was also stronger than expected (146K 3m/3m vs mkt 120K), so on net probably a bit of a wash. The unemployment rate held steady at multi-decade lows of 4.2%, as expected. Wage growth should still be strong enough at these levels to leave the BoE comfortable with a very slow and gradual hiking cycle.”