• Jesús Cabra Guisasola, Associate at Validus Risk Management


• 16.11.2021 01:00 pm
#riskmanagement #employement

Commenting on the market reaction to the latest UK employment data, Jesús Cabra Guisasola, Associate at Validus Risk Management, said: “The UK jobs market improved during the month of October, bringing +160k more people into employment and partially offsetting workers who were on the government’s furlough program during the pandemic. It suggests very few of the 1.1m workers who were in the program became unemployed, and also showed a strong average earning and unemployment rate, better than forecast.

“This data will put further pressure on the BoE and members of the MPC to make a decision around rising interest rates as Governor Andrew Bailey recently mentioned that the only missing economic data was how the UK labour market would react after the end of the furlough program.

“It will be important to see the next jobs report which will contain official data on the employment and unemployment rates for October and, crucially, will be released just two days before the BoE’s decision in December.

“Sterling climbed against the dollar on the back of the positive data and is currently testing 1.345. Nevertheless, we continue being cautious around the UK economy as inflation continues rising, with Covid and the negotiations between the UK and EU also weighing on the pound to the downside.”