A new report has revealed UK citizens have the lowest quality of life in the whole of Europe, due to long working hours, lower holiday entitlement, and high living costs – even though they enjoy the highest net household income, an average £35,730, which is more than £10,000 higher than the European average.
According to the uSwitch.com European Quality of Life survey, people in the UK have a lower life expectancy than those in France, Germany, Spain, Sweden and the Netherlands.
This could be attributed to the fact that the UK has the lowest spend on healthcare and education. In addition, UK citizens have to pay more than the European average for fuel, food, alcohol and cigarettes.
Ann Robinson, Director of Consumer Policy at uSwitch.com, said: “There is more to good living than money and this report shows why so many Brits are giving up on the UK and heading to France and Spain. We earn substantially more than our European neighbours, but this level of income is needed just to keep a roof over our heads, food on the table and our homes warm.”
The Spanish enjoy the most hours of sunshine, the lowest alcohol prices and the highest number of days’ holiday – a huge 41 days, compared to an average of 28 in the UK. However, France topped the league, spending the most on healthcare and enjoying the longest life expectancy.
More depressing still, next year’s Quality of Life survey is expected to show the full impact of the recession – the UK is still experiencing the effects of the downturn in the economy, while France has emerged from its recession. Because of this, quality of life is likely to drop even further, as public spending is reined in and the number of jobless is expected to climb to three million.
“For too long the focus in the UK has been on standard of living rather than quality of life. As a result we have lost all sense of balance between wealth and well-being. The recession could prove to be a turning point, forcing us to re-evaluate our way of life, get back to basics and to the things that really count,” concluded Robinson.
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
UK ENJOYS HIGHEST NET INCOME IN EUROPE BUT LIFE QUALITY IS POOREST
While the UK enjoys the highest net household income in Europe, quality of life is the poorest, proving that there is more to good living than money. Long working hours, lower holiday entitlement and a high cost of living all contribute to a poor quality of life in the UK - and it's not much better for the Irish either:
•Best quality of life can be found in France and Spain. The worst can be found in the UK and Ireland
•Depressing: UK workers can expect to work 3 years longer and die 2 years younger than their French counterparts
•Cost of living: consumers in the UK are paying above the European average for fuel, food, alcohol and cigarettes
•Health and education: the UK's spend on healthcare and education is below the European average. Only Ireland and Poland spend less on healthcare, but Ireland has more doctors and hospital beds and Poland has more beds than the UK
•Longer life: Germany, Spain, France, Italy, the Netherlands and Sweden all enjoy longer life expectancy than the UK
•Retirement age in the UK has dropped, but it is still the 4th highest in Europe
•UK enjoys highest net household income, but workers in the UK get lowest holiday entitlement in Europe.
The latest uSwitch.com European Quality of life Index reveals that people in the UK are still getting a raw deal compared with their European neighbours. Despite the fact that the UK enjoys the highest net household income in Europe - GBP35,730 a year, which is more than GBP10,000 a year above the European average - this does not translate into a good life. Instead, people in the UK can expect to work longer, die younger and enjoy lower standards of healthcare and education.
The uSwitch.com study examined 17 factors in order to understand where the UK sits in relation to nine other major European countries. Variables such as net income, taxes and the cost of essential goods, such as fuel, food and energy bills, were examined along with lifestyle factors, such as hours of sunshine, holiday entitlement, working hours and life expectancy to provide a complete picture of the quality of life experienced in each country.
The findings show that people in the UK and Ireland have the poorest quality of life, while the French and Spanish enjoy the highest. The UK gets the lowest number of days holiday per year, pays the highest prices for diesel and food and spends below the European average (as a percentage of GDP) on health and education. It also has the 4th lowest life expectancy in Europe and workers retire later than most of their European counterparts.
France, which topped the league, enjoys one of the lowest retirement ages, has the longest life expectancy in Europeand spends the most on healthcare Its workers also benefit from 34 days holiday a year - compared with only 28 in the UK - and it comes only behind Spain and Italy for hours of sunshine.
Spain, which topped the league last year, enjoys the most sunshine - but it has more to smile about than just that. The Spanish can expect to live a year longer than people in the UK, enjoy the highest number of days holiday in Europe (41 days a year) and pay the lowest fuel prices. And as if that's not enough to celebrate, they are paying the lowest prices for alcohol too.
This year's index does not reveal the full impact of the recession - this can be expected to show next year. However, France officially went into recession in May 2009 and has already emerged again (August 2009). This quick turnaround could see it maintaining a high quality of life despite the economic difficulties facing most European nations. Spain entered recession in February 2009 with no official announcement as to when it is likely to exit. Poland is the only country in the study not to have gone into recession and it is widely expected to avoid it throughout 2009.
Out of the two countries experiencing the lowest quality of life, Ireland went into recession first in September 2008 while the UK officially went into recession in January 2009. Both are yet to exit and the impact on the UK is expected to be severe and long lasting. Unemployment has already hit a 14 year high at 2.47 million workers or 7.9% of the workforce - the highest rate since 1995. Even with the UK due to start recovery shortly, the jobless toll is still expected to rise with the British Chambers of Commerce predicting numbers exceeding 3 million next year.
Importantly, as politicians start to plot a way out of the financial mire, quality of life in the UK could suffer even more. This is because public spending is likely to be reined in so that the amount spent in the UK on education and health could fall. The Labour Government has already indicated GBP2 billion of cuts to come on education but it has so far rejected advice from management consultants to cut the NHS workforce by 10% over the next 5 years. The UK is already spending below the European average (as a percentage of GDP) on both health and education.
Wealth
The study shows that the UK has the highest net household income in Europe. At GBP35,730 it is GBP10,325 higher than the European average and more than double that of Spain, which has the lowest net household income at GBP16,789. However, people living in the UK also have to contend with a high cost of living - the average household energy bill alone adds up to an eye watering GBP1,239 a year while the average household now pays GBP1,175 a year in council tax. Even travel is expensive with a 30 mile journey into London on a train setting commuters back over GBP3,000 a year.
In fact, consumers in the UK are paying above average for most of the essentials:
•Fuel: at GBP1.08 a litre, the UK is the second most expensive country in Europe for unleaded petrol. However, diesel is more expensive in the UK than anywhere else in Europe - GBP1.13 a litre, which is 19p or 20% above the European average (GBP0.94). Spain has the lowest price for diesel at only GBP0.81 a litre.
•Food: again, the UK is paying more than all its neighbours. The same basket of goods that costs GBP134.48 in the UK costs GBP124 on average in Europe and only GBP118.76 in France, which enjoys the lowest food prices.
•Cigarettes and alcohol: not essentials, but nevertheless only Ireland and Sweden pays more for a round of drinks than the UK and only the Irish pay more for cigarettes than smokers in the UK.
•Best quality of life can be found in France and Spain. The worst can be found in the UK and Ireland
•Depressing: UK workers can expect to work 3 years longer and die 2 years younger than their French counterparts
•Cost of living: consumers in the UK are paying above the European average for fuel, food, alcohol and cigarettes
•Health and education: the UK's spend on healthcare and education is below the European average. Only Ireland and Poland spend less on healthcare, but Ireland has more doctors and hospital beds and Poland has more beds than the UK
•Longer life: Germany, Spain, France, Italy, the Netherlands and Sweden all enjoy longer life expectancy than the UK
•Retirement age in the UK has dropped, but it is still the 4th highest in Europe
•UK enjoys highest net household income, but workers in the UK get lowest holiday entitlement in Europe.
The latest uSwitch.com European Quality of life Index reveals that people in the UK are still getting a raw deal compared with their European neighbours. Despite the fact that the UK enjoys the highest net household income in Europe - GBP35,730 a year, which is more than GBP10,000 a year above the European average - this does not translate into a good life. Instead, people in the UK can expect to work longer, die younger and enjoy lower standards of healthcare and education.
The uSwitch.com study examined 17 factors in order to understand where the UK sits in relation to nine other major European countries. Variables such as net income, taxes and the cost of essential goods, such as fuel, food and energy bills, were examined along with lifestyle factors, such as hours of sunshine, holiday entitlement, working hours and life expectancy to provide a complete picture of the quality of life experienced in each country.
The findings show that people in the UK and Ireland have the poorest quality of life, while the French and Spanish enjoy the highest. The UK gets the lowest number of days holiday per year, pays the highest prices for diesel and food and spends below the European average (as a percentage of GDP) on health and education. It also has the 4th lowest life expectancy in Europe and workers retire later than most of their European counterparts.
France, which topped the league, enjoys one of the lowest retirement ages, has the longest life expectancy in Europeand spends the most on healthcare Its workers also benefit from 34 days holiday a year - compared with only 28 in the UK - and it comes only behind Spain and Italy for hours of sunshine.
Spain, which topped the league last year, enjoys the most sunshine - but it has more to smile about than just that. The Spanish can expect to live a year longer than people in the UK, enjoy the highest number of days holiday in Europe (41 days a year) and pay the lowest fuel prices. And as if that's not enough to celebrate, they are paying the lowest prices for alcohol too.
This year's index does not reveal the full impact of the recession - this can be expected to show next year. However, France officially went into recession in May 2009 and has already emerged again (August 2009). This quick turnaround could see it maintaining a high quality of life despite the economic difficulties facing most European nations. Spain entered recession in February 2009 with no official announcement as to when it is likely to exit. Poland is the only country in the study not to have gone into recession and it is widely expected to avoid it throughout 2009.
Out of the two countries experiencing the lowest quality of life, Ireland went into recession first in September 2008 while the UK officially went into recession in January 2009. Both are yet to exit and the impact on the UK is expected to be severe and long lasting. Unemployment has already hit a 14 year high at 2.47 million workers or 7.9% of the workforce - the highest rate since 1995. Even with the UK due to start recovery shortly, the jobless toll is still expected to rise with the British Chambers of Commerce predicting numbers exceeding 3 million next year.
Importantly, as politicians start to plot a way out of the financial mire, quality of life in the UK could suffer even more. This is because public spending is likely to be reined in so that the amount spent in the UK on education and health could fall. The Labour Government has already indicated GBP2 billion of cuts to come on education but it has so far rejected advice from management consultants to cut the NHS workforce by 10% over the next 5 years. The UK is already spending below the European average (as a percentage of GDP) on both health and education.
Wealth
The study shows that the UK has the highest net household income in Europe. At GBP35,730 it is GBP10,325 higher than the European average and more than double that of Spain, which has the lowest net household income at GBP16,789. However, people living in the UK also have to contend with a high cost of living - the average household energy bill alone adds up to an eye watering GBP1,239 a year while the average household now pays GBP1,175 a year in council tax. Even travel is expensive with a 30 mile journey into London on a train setting commuters back over GBP3,000 a year.
In fact, consumers in the UK are paying above average for most of the essentials:
•Fuel: at GBP1.08 a litre, the UK is the second most expensive country in Europe for unleaded petrol. However, diesel is more expensive in the UK than anywhere else in Europe - GBP1.13 a litre, which is 19p or 20% above the European average (GBP0.94). Spain has the lowest price for diesel at only GBP0.81 a litre.
•Food: again, the UK is paying more than all its neighbours. The same basket of goods that costs GBP134.48 in the UK costs GBP124 on average in Europe and only GBP118.76 in France, which enjoys the lowest food prices.
•Cigarettes and alcohol: not essentials, but nevertheless only Ireland and Sweden pays more for a round of drinks than the UK and only the Irish pay more for cigarettes than smokers in the UK.
Saturday, November 28, 2009
MORE QE ON THE CARDS TO BOLSTER UK
the release of stronger-than-expected US GDP data last week and favourable confidence numbers from the eurozone highlight the position of the UK as being one of the weakest economies in the G10. There is a strong chance that this week’s Bank of England Monetary Policy Committee (MPC) meeting will bring yet another dose of quantitative easing to try to to remedy this situation; a policy which has weighed on the pound since its introduction last March.
Although sterling is considered to be undervalued against the euro, the UK economy has remained in recession while the Eurozone recovery appears to have stayed on track, which suggests that euro-sterling could remain elevated for some months to come.
The substantial cost of bank bailouts following the financial crisis has clearly put the UK economy at a disadvantage to the Eurozone. But it wasn’t just the balance sheets of British banks that were exposed: those of UK consumers are in equally poor shape heading into the financial crisis and the repairing process could hinder consumption and growth for years.
Last week Eurostat reported that the household savings rate (savings as a percentage of disposable income) in the Euro Area stood at 16.5 per cent in the second quarter of 2009 – the highest rate since the series began in the first quarter of 1999.
An increase in the savings rate is natural at this point of the economic cycle and it shows that consumers are looking to protect themselves from the increased threat of unemployment and are saving more to make up for wealth lost during the financial crisis.
In the second quarter of 2009, the UK savings rate rose to its highest level for several years after hitting a low in the first quarter of 2008. That said, there are striking differences between the savings rates of the UK and the Eurozone. The second quarter high in the UK rate is a relatively moderate 5.6 per cent.
Source
Although sterling is considered to be undervalued against the euro, the UK economy has remained in recession while the Eurozone recovery appears to have stayed on track, which suggests that euro-sterling could remain elevated for some months to come.
The substantial cost of bank bailouts following the financial crisis has clearly put the UK economy at a disadvantage to the Eurozone. But it wasn’t just the balance sheets of British banks that were exposed: those of UK consumers are in equally poor shape heading into the financial crisis and the repairing process could hinder consumption and growth for years.
Last week Eurostat reported that the household savings rate (savings as a percentage of disposable income) in the Euro Area stood at 16.5 per cent in the second quarter of 2009 – the highest rate since the series began in the first quarter of 1999.
An increase in the savings rate is natural at this point of the economic cycle and it shows that consumers are looking to protect themselves from the increased threat of unemployment and are saving more to make up for wealth lost during the financial crisis.
In the second quarter of 2009, the UK savings rate rose to its highest level for several years after hitting a low in the first quarter of 2008. That said, there are striking differences between the savings rates of the UK and the Eurozone. The second quarter high in the UK rate is a relatively moderate 5.6 per cent.
Source
Sunday, November 15, 2009
U.K. Government Spending Must Be Cut 2% a Year, Deloitte Says
Cuts in U.K. government spending of two percent a year will be needed until at least 2014, squeezing Britain’s public services and stifling economic growth, Deloitte Economic Adviser Roger Bootle said.
The public sector will bear the brunt of additional fiscal tightening worth five percent of gross domestic product, or about 70 billion pounds ($115 billion) a year over the next five years, Bootle said in an e-mailed statement today. These cuts would be additional to measures already announced by Chancellor of the Exchequer Alistair Darling, he said.
“After a decade or more in which rapid increases in public spending have lent powerful support to the U.K. economy, the great squeeze is about to begin,” Bootle wrote.
U.K. public borrowing is forecast to rise to 15 percent of GDP this year and public debt is approaching 100 percent of GDP, leaving the public finances in “the worst shape for more than 50 years,” said Bootle, who is Managing Director of Capital Economics Limited and was a Treasury adviser under Britain’s last Conservative government, which exited power in 1997.
“Alistair Darling put some measures in place to address the situation in April’s Budget. But they did not go nearly far enough. We estimate that a further fiscal tightening worth some five percent of GDP per annum -- or around 70 billion pounds -- will be needed over the next five years, and possibly much more.”
The cuts on their own would shave more than one percent off annual real economic growth compared with recent years, Bootle said. The effect would increase to a two percent reduction when the decline in growth in household income and spending is taken into account, he said.
‘Sluggish’ Growth
“Rates of economic growth are likely to remain pretty sluggish while the squeeze takes place,” Bootle said in his note. “And if the squeeze is too tight, the economy could fall back into recession.”
Consumer-related companies and sectors will be hardest hit by the squeeze, he said, with cut backs in public investment hitting the construction and transportation industries.
“It’s not all bad news,” he said. “The widespread consensus that drastic action is needed and justified to sort out the fiscal position presents the authorities with a once-in- a-generation opportunity to remodel the U.K. economy and to reduce its dependence on the state.”
Source
The public sector will bear the brunt of additional fiscal tightening worth five percent of gross domestic product, or about 70 billion pounds ($115 billion) a year over the next five years, Bootle said in an e-mailed statement today. These cuts would be additional to measures already announced by Chancellor of the Exchequer Alistair Darling, he said.
“After a decade or more in which rapid increases in public spending have lent powerful support to the U.K. economy, the great squeeze is about to begin,” Bootle wrote.
U.K. public borrowing is forecast to rise to 15 percent of GDP this year and public debt is approaching 100 percent of GDP, leaving the public finances in “the worst shape for more than 50 years,” said Bootle, who is Managing Director of Capital Economics Limited and was a Treasury adviser under Britain’s last Conservative government, which exited power in 1997.
“Alistair Darling put some measures in place to address the situation in April’s Budget. But they did not go nearly far enough. We estimate that a further fiscal tightening worth some five percent of GDP per annum -- or around 70 billion pounds -- will be needed over the next five years, and possibly much more.”
The cuts on their own would shave more than one percent off annual real economic growth compared with recent years, Bootle said. The effect would increase to a two percent reduction when the decline in growth in household income and spending is taken into account, he said.
‘Sluggish’ Growth
“Rates of economic growth are likely to remain pretty sluggish while the squeeze takes place,” Bootle said in his note. “And if the squeeze is too tight, the economy could fall back into recession.”
Consumer-related companies and sectors will be hardest hit by the squeeze, he said, with cut backs in public investment hitting the construction and transportation industries.
“It’s not all bad news,” he said. “The widespread consensus that drastic action is needed and justified to sort out the fiscal position presents the authorities with a once-in- a-generation opportunity to remodel the U.K. economy and to reduce its dependence on the state.”
Source
Monday, September 28, 2009
Provident concerned at low household income
a lender to low-income households, reported a 4 per cent rise in first-half profits, but warned its customers were being squeezed by pay cuts and working fewer hours.
The company specialises in lending relatively small sums – typically £400 – to poorer customers on an unsecured basis, with repayments picked up by an agent from the borrower’s home.
Its annual repayment rates, which tend to be 189 per cent or 254 per cent on its most popular product, have attracted criticism from Barnardo’s, the children’s charity.
Provident says its fee structure is transparent and does not penalise borrowers for missed payments, adding that home collection is costly.
In the first half of 2009, the group said its pre-tax profit was £53.1m, up from £51.3m in the first half of 2008. The bulk of its profit came from its doorstep lending, although the contribution from its Vanquis credit card business almost doubled to £5m. Sales rose 8 per cent to £401.2m.
Bad debt impairments were equivalent to 31 per cent of sales, marginally up from 30 per cent in the prior year. An interim dividend of 25.4p has been declared, unchanged from the previous year.
Peter Crook, chief executive, told the Financial Times that he felt unemployment “could easily get to 3m or so”. However, he said “under-employment” – workers being forced to work fewer hours or take pay cuts – was perhaps a bigger issue, eating into the income of poorer households.
Mr Crook said the group had taken a cautious approach to new lending, with about 70 per cent of doorstep loan requests and 83 per cent of credit card requests being declined. Provident shares yesterday fell 7 per cent or 60½p to 794½p.
The company specialises in lending relatively small sums – typically £400 – to poorer customers on an unsecured basis, with repayments picked up by an agent from the borrower’s home.
Its annual repayment rates, which tend to be 189 per cent or 254 per cent on its most popular product, have attracted criticism from Barnardo’s, the children’s charity.
Provident says its fee structure is transparent and does not penalise borrowers for missed payments, adding that home collection is costly.
In the first half of 2009, the group said its pre-tax profit was £53.1m, up from £51.3m in the first half of 2008. The bulk of its profit came from its doorstep lending, although the contribution from its Vanquis credit card business almost doubled to £5m. Sales rose 8 per cent to £401.2m.
Bad debt impairments were equivalent to 31 per cent of sales, marginally up from 30 per cent in the prior year. An interim dividend of 25.4p has been declared, unchanged from the previous year.
Peter Crook, chief executive, told the Financial Times that he felt unemployment “could easily get to 3m or so”. However, he said “under-employment” – workers being forced to work fewer hours or take pay cuts – was perhaps a bigger issue, eating into the income of poorer households.
Mr Crook said the group had taken a cautious approach to new lending, with about 70 per cent of doorstep loan requests and 83 per cent of credit card requests being declined. Provident shares yesterday fell 7 per cent or 60½p to 794½p.
Tuesday, September 15, 2009
Euro zone household income ticks up after tax in Q1
FRANKFURT, July 30 (Reuters) - Household disposable income grew slightly in the euro zone in the first quarter of the year, boosted by government outlays, European Central Bank data showed on Thursday.
Household net disposable income -- income available to spend or save after taxes and social security -- grew 0.9 percent in January-March from the first quarter of 2008, after a 2.7 percent rise in the previous quarter, the ECB said in a report on the first quarter.
Disposable income is different to 'discretionary income', which also subtracts normal expenses like rent, utilities and other essentials.
The report also said, however, that households' overall wealth fell 10 percent in annual terms, hit by large falls in stock markets and other asset prices, and that they were spending less and saving more.
In the first quarter, the annual growth rate of net household savings rose to 28.4 percent from 19.8 percent in the previous quarter.
But the ECB said firms had suffered the brunt of the woes. Net income of non-financial corporations fell 23 percent in the first quarter, from a 10.9 percent drop in the final months of 2008.
Source
Household net disposable income -- income available to spend or save after taxes and social security -- grew 0.9 percent in January-March from the first quarter of 2008, after a 2.7 percent rise in the previous quarter, the ECB said in a report on the first quarter.
Disposable income is different to 'discretionary income', which also subtracts normal expenses like rent, utilities and other essentials.
The report also said, however, that households' overall wealth fell 10 percent in annual terms, hit by large falls in stock markets and other asset prices, and that they were spending less and saving more.
In the first quarter, the annual growth rate of net household savings rose to 28.4 percent from 19.8 percent in the previous quarter.
But the ECB said firms had suffered the brunt of the woes. Net income of non-financial corporations fell 23 percent in the first quarter, from a 10.9 percent drop in the final months of 2008.
Source
Friday, August 28, 2009
Household income drops as less hours worked
Average household income has fallen $80 a month, despite a quarterly rise in pay rates, analysis shows.
The Australian labour price index rose 0.8 per cent in the June quarter, in trend terms, propelled by pay increases in retail sales, hospitality and construction, data released today by the Australian Bureau of Statistics show.
But a cut in the number of hours offered by employers means households' overall earnings suffered a drop in July.
"With labour market conditions not deteriorating as rapidly as we had anticipated at the start of the year, wage growth probably will slow only modestly going forward," said JP Morgan’s Helen Kevans.
"That said, household incomes will suffer due to the sharp fall in the number of hours being worked. The decline in the numbers of hours worked has shaved around $80 per month off average household incomes."
The analysis comes as official data from the ABS show wages increasing 3.8 per cent for the year to June, the slowest pace in almost three years, after a 4.2 per cent rise in the year to March, the ABS said.
The payrise momentum in the public and private sectors continued, but growth in the private sector was more subdued, the ABS data showed.
Private sector wages rose by 0.7 per cent in the quarter compared with 1 per cent for the public sector, the ABS said.
"A divergence in wage trends is evident in second quarter between the public and private sectors, with wage pressures remaining elevated in the public sector, but weakening further in the private sector," ANZ economist Julie Toth said.
"This slowdown in wages growth was expected, given the weakening trends in employment - with little or no jobs growth evident in recent labour market data - as well as the softening inflation outlook," she said.
Unemployment was 5.8 per cent in July, unchanged from June.
However, July labour data showed a loss of 16,000 full time jobs, while part-time jobs soared by 48,200.
The average number of hours worked fell by 0.43 per cent on a monthly basis, seasonally adjusted, to 1.515 million in July from 1.521 in June.
The jobless rate is expected to rise in coming months as more companies cut staff because of falling demand.
Source
The Australian labour price index rose 0.8 per cent in the June quarter, in trend terms, propelled by pay increases in retail sales, hospitality and construction, data released today by the Australian Bureau of Statistics show.
But a cut in the number of hours offered by employers means households' overall earnings suffered a drop in July.
"With labour market conditions not deteriorating as rapidly as we had anticipated at the start of the year, wage growth probably will slow only modestly going forward," said JP Morgan’s Helen Kevans.
"That said, household incomes will suffer due to the sharp fall in the number of hours being worked. The decline in the numbers of hours worked has shaved around $80 per month off average household incomes."
The analysis comes as official data from the ABS show wages increasing 3.8 per cent for the year to June, the slowest pace in almost three years, after a 4.2 per cent rise in the year to March, the ABS said.
The payrise momentum in the public and private sectors continued, but growth in the private sector was more subdued, the ABS data showed.
Private sector wages rose by 0.7 per cent in the quarter compared with 1 per cent for the public sector, the ABS said.
"A divergence in wage trends is evident in second quarter between the public and private sectors, with wage pressures remaining elevated in the public sector, but weakening further in the private sector," ANZ economist Julie Toth said.
"This slowdown in wages growth was expected, given the weakening trends in employment - with little or no jobs growth evident in recent labour market data - as well as the softening inflation outlook," she said.
Unemployment was 5.8 per cent in July, unchanged from June.
However, July labour data showed a loss of 16,000 full time jobs, while part-time jobs soared by 48,200.
The average number of hours worked fell by 0.43 per cent on a monthly basis, seasonally adjusted, to 1.515 million in July from 1.521 in June.
The jobless rate is expected to rise in coming months as more companies cut staff because of falling demand.
Source
Subscribe to:
Comments (Atom)