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
https://arab.news/pjktd
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
Saudi POS transactions see 20% surge to hit $4bn: SAMA
RIYADH: Saudi Arabia’s total point-of-sale transactions surged by 20.4 percent in the week ending Nov. 29, to reach SR15.1 billion ($4 billion).
According to the latest data from the Saudi Central Bank, the number of POS transactions represented a 9.1 percent week-on-week increase to 240.25 million compared to 220.15 million the week before.
Most categories saw positive change across the period, with spending on laundry services registering the biggest uptick at 36 percent to SR65.1 million. Recreation followed, with a 35.3 percent increase to SR255.99 million.
Expenditure on apparel and clothing saw an increase of 34.6 percent, followed by a 27.8 percent increase in spending on telecommunication. Jewelry outlays rose 5.6 percent to SR354.45 million.
Data revealed decreases across only three sectors, led by education, which saw the largest dip at 40.4 percent to reach SR62.26 million.
Spending on airlines in Saudi Arabia fell by 25.2 percent, coinciding with major global flight disruptions. This followed an urgent Airbus recall of 6,000 A320-family aircraft after solar radiation was linked to potential flight-control data corruption. Saudi carriers moved swiftly to implement the mandatory fixes.
Flyadeal completed all updates and rebooked affected passengers, while flynas updated 20 aircraft with no schedule impact. Their rapid response contained the disruption, allowing operations to return to normal quickly.
Expenditure on food and beverages saw a 28.4 percent increase to SR2.31 billion, claiming the largest share of the POS. Spending on restaurants and cafes followed with an uptick of 22.3 percent to SR1.90 billion.
The Kingdom’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 14.1 percent surge to SR5.08 billion, up from SR4.46 billion the previous week. The number of transactions in the capital reached 75.2 million, up 4.4 percent week-on-week.
In Jeddah, transaction values increased by 18.1 percent to SR2.03 billion, while Dammam reported a 14 percent surge to SR708.08 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the nation’s broader digital economy.
