FIRST AIRED: September 14, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

UK jobs market shrugs off Brexit shock

Opening sequence

Opening sequence

Business

UK jobs market shrugs off Brexit shock

0:00
17:50
More Info

COMING UP:UK jobs market shrugs off Brexit shock

×

Transcript

00:00:00
>>
SOUND] B
itons are keeping their jobs, but might soon feel a little less prosperous. Unemployment holding steady at 4.9%, and job creation up, the numbers adding to recent signs that the economy has shrugged off June's shock vote for Brexit. But Reuters' UK Chief Economics Correspondent, Bill Schomberg, says the longer term outlook remains cloudy.
00:00:23
>> Most people still do expect that unemployment will rise as companies put decisions about hiring on hold. There is a bit of a lag in the labor market data. It reacts more slowly than other indicators to a downturn. And the Bank of England for example, does expect unemployment to rise notably in the next couple of years.
00:00:45
>> Slowing wage growth the main negative in Wednesday's data. That could put the squeeze on household spending, especially if inflation increases. Price rises forecast to pick up as a weaker Sterling makes imports more expensive. Now the Bank of England will feed the new numbers into a policy decision due Thursday.
00:01:05
>> We'll be watching out closely for any signs that the policymakers, who in August said that they were likely to back another interest rate cut later this year, are having any second thoughts given the recent run of strong data.>> Wednesday's figures will cheer backers of Brexit, but big firms may be holding fire on strategy until they know exactly how and when the country will leave the EU.
00:01:30
On that point, we're still no nearer to clarity.