Despite wages increases at their fastest pace since early 2017, the pace of growth still lags inflation meaning that workers, on average, are experiencing pay cuts in real terms. The average earnings index rose by 2.5% during the month of October and whilst this reading is a beat on the previous 2.3% it remains well below equivalent inflation readings for the same period - the CPI for October was 3.0%.
In addition to the wage data the claimant count change also rose by more than expected to 5.9k - its highest level in 5 months. The unemployment rate remains at its lowest since 1975 at 4.3% but again here there could be a case made for mild disappointment given that consensus forecasts had predicted a fall to 4.2%.
Overall the employment data could be described as solid, but given the market expectations a tad disappointing. The market reaction has seen the pound pull back from its highest levels of the day whilst the FTSE 100 trades around the 7500 level after three days of solid gains