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UK jobless rate falls, insecurity up

Wednesday, July 20, 2016 - 01:49

UK unemployment was at an eleven-year low in May, according to official readings - but a new survey taken since Britain's Brexit vote shows the outlook among UK householders is tumbling. Kate King reports.

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May is the word. It's the month in which the UK's unemployment rate fell to its lowest in more than a decade and it's Britain's new prime minister who used the data to allay economic concerns during her very first prime minister's question time in parliament. (SOUNDBITE) (English) BRITISH PRIME MINISTER, THERESA MAY, SAYING: "I'm sure the whole house will wish to join me in welcoming today's employment figures." But that of course was BEFORE Britain voted out of the EU. For many it's less about the here and now, and more when and what as the UK seeks to make sense of economic data POST the Brexit vote. Since then fears over job security have risen to their highest level in nearly three years On Wednesday the Bank of England said business uncertainty "had risen markedly" but there was little evidence so far that consumers were spending less. The latest CPI figures show the cost of household goods and services went up point-five percent in the year to June But as the fall in sterling makes imported goods more expensive, some analysts believe inflation is set to rise sharply. And that could halt expectations that the Bank of England will cut interest rates in August to combat the possibility of slow growth. (SOUNDBITE) CMC MARKETS ANALYST, JASPER LAWLER, SAYING: "In my opinion it should I think higher inflation calls for a rate hike, not a rate cut, but none the less the bank of england are very much focused on consumer investor business confidence which has taken a dip after the referendum." While talk of improved wages and employment figures has Britain bathing in sunshine for now, realistically the storm clouds still linger in the distance.

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UK jobless rate falls, insecurity up

Wednesday, July 20, 2016 - 01:49