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UK jobs data defies Brexit shock

Wednesday, September 14, 2016 - 01:37

Britain's labour market showed little sign of taking a hit after the country's Brexit vote. As Ivor Bennett reports, official data shows the unemployment rate held steady and job creation rose in the three months to July.

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Those who can make the most of it. It's not every year - or even every decade - Britain sees weather like this in September. A relief to the government then the beaches are relatively empty. More in work than working on their tan. Labour market numbers are the latest data to weather the Brexit shock. Unemployment holding steady at 4.9 percent in the second quarter. While the number of people in work rose by 174,000. Sending the UK employment rate to a record high of 74.5 percent. (SOUNDBITE) (English): MICHAEL HEWSON, MARKET ANALYST, CMC MARKETS, SAYING: "I think it's important to understand that Brexit, while it was a temporary shock, is going to be more of a process than an event and it's going to take place over a period of time. And as such, I think the economy should be able to absorb that. And I certainly think we're seeing evidence of that in the most recent economic data." It may be too soon though to bask in any Brexit glow. The tide of data also brought in a rise in those claiming unemployment benefits. Not by much but enough to suggest, to some, this could be the calm before the storm. SOUNDBITE (English) KEN ODELUGA, MARKET ANALYST, CITY INDEX, SAYING: "We might be seeing some seasonal factors. There are a number of other variables which could be keeping many things aloft which could fade away as the year draws to an end. And then perhaps we could see the more negative side of Brexit coming in." For now though it's only positive. Meaning all eyes are on the Bank of England. A November rate cut perhaps not as likely as previously thought.

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UK jobs data defies Brexit shock

Wednesday, September 14, 2016 - 01:37