LONDON: The number of people in work in Britain unexpectedly rose in the three months before the missed Oct. 31 deadline for Brexit, according to data which suggests the labor market was retaining some of its strength.
The number of people in employment rose by 24,000 to 32.8 million in the August-to-October period, bucking the median forecast for a drop of 10,000 in a Reuters poll of economists.
The employment rate hit an all-time high of 76.2 percent while the unemployment rate fell back to its lowest level since the three months to January 1975 at 3.8 percent.
“The larger-than-expected rise in employment in October suggests the labor market is not getting any worse and may have even started to turn around,” said Andrew Wishart at Capital Economics.
The increase in jobs was driven by a rise in the number of self-employed workers and full-time staff, while the number of part-time employees fell.
British government bond prices fell by a small amount as investors viewed the chance of a Bank of England interest rate cut next year as slightly lower.
Britain’s labor market has stayed strong even as the economy slowed following the 2016 referendum vote to leave the European Union.
That is due in part to employers, who are uncertain about what Brexit will bring, hiring staff who can be laid off easily rather than making longer-term commitments to invest in equipment.
But there had been signs recently that the jobs boom was weakening.
These prompted two interest-rate setters at the Bank of England to vote for a cut to borrowing costs last month, and they are expected to do so again this week.
Prime Minister Boris Johnson last week reduced some of the uncertainty hanging over the economy by winning a big majority in a national election, ending any doubts about whether Britain would leave the European Union on the new date of Jan. 31.
But nerves about Brexit could return soon.
Johnson plans to pass a law ruling out any extension of the Brexit transition period beyond the end of 2020, saying he is confident he will clinch a free trade deal with the European Union by then.
There were some signs of caution among employers in Tuesday’s data.
Vacancies were the lowest since the three months to August 2017 at 794,000.
The Office for National Statistics also said average earnings rose by an annual 3.2 percent, the weakest increase in more than a year and slowing sharply from growth of 3.7 percent in the three months to September.
The ONS attributed much of the slowdown, however, to high bonus payments in October 2018 which distorted the comparison.
Excluding bonuses, pay growth slowed less sharply to 3.5 percent from 3.6 percent in the three months to September and was above the Reuters poll forecast of 3.4 percent.
UK jobs growth resumes, unemployment rate near 45-year low
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UK jobs growth resumes, unemployment rate near 45-year low
- Number of people in employment rose by 24,000 to 32.8 million in the August-to-October period
- Britain’s labor market has stayed strong even as the economy slowed following the 2016 referendum vote
Islamic banks’ market share in Turkiye rises to 9.2%: Fitch Ratings
RIYADH: Islamic banks in Turkiye lifted their asset market share to 9.2 percent in 2025 from 8.1 percent a year earlier, as financing and deposits outpaced the broader banking sector, a new analysis showed.
In its latest report, Fitch Ratings said financing and deposit market shares rose to 7.9 percent and 10.4 percent, respectively, by the end of 2025, compared with 7.3 percent and 9.4 percent in 2024.
The agency noted that new digital Islamic banks are emerging in the country, with investment from Gulf Cooperation Council countries expected to continue.
Turkiye’s strong ties with Islamic countries across the Balkans, Africa and the Middle East support the development of its Islamic banking sector, attracting investors and contributing to the industry’s growth.
In its latest report, Fitch stated: “Three recently established private Islamic banks (two digital) grew rapidly in the first nine months of 2025. Investment in digital participation banking from the Gulf Cooperation Council countries underscores the potential for further investment from the region.”
It added: “Planned establishment of new participation banks, and rapid growth of recently established banks – albeit from small bases – means that the segment landscape may be reshaped in 2026.”
Dubai Islamic Bank PJSC’s investment in digital bank TOM underscores the potential for further GCC investment.
Turkish regulators have approved the establishment of Halk Katilim Bankasi A.S. and Adil Katilim Bankasi A.S. (digital), while BIM Birlesik Magazalar A.S.’s application is pending.
Fitch added that state-owned participation banks may merge or pursue initial public offerings, potentially reshaping the banking landscape.
The report predicts Islamic banks’ market share will rise further in 2026, supported by strong internal capital generation and growth appetite. However, the non-performing financing ratio may increase moderately due to high inflows.
“The segment’s non-performing financings ratio deteriorated to 2 percent at end-2025 compared to 1.2 percent in 2024 but remained below the sector average of 2.5 percent,” said Fitch.
It added: “We expect pressure to persist given still-high financing rates, high but declining inflation, and the sensitivity of unsecured retail (lower share than conventional banks) and SME segments to economic cycles. We forecast a moderate increase in the segment NPF ratio in 2026.”
