Friday’s figures were dominated by employment numbers at home and across the Atlantic, with the UK labour market appearing to enter "freefall" after the vote to leave the European Union. The number of permanent jobs placed by recruitment firms last month fell at the fastest pace since May 2009.
The monthly report from the Recruitment and Employment Confederation (REC) showed that starting salaries for permanent jobs rose in July at the slowest pace in more than three years. Overall, the survey added to evidence that business confidence and activity slowed sharply after the June 23 vote to leave the EU. The UK jobs market suffered a dramatic freefall in July, with permanent hiring dropping to levels not seen since the recession of 2009. The survey suggested businesses were focusing more on hiring short-term staff because of the uncertainty.
In the US, employment increased more than expected in July and wages picked up, boosting expectations of an acceleration in economic growth and raising the probability of a Federal Reserve interest rate hike this year. Non-farm payrolls rose by 255,000 jobs after an upwardly revised 292,000 surge in June, with hiring broadly based across sectors of the economy, the Labour Department said on Friday.
The unemployment rate was unchanged at 4.9 percent as more people entered the labour market. Highlighting job market strength, average hourly earnings increased a healthy eight cents and workers put in more hours. In addition, 18,000 more jobs were created in May and June than previously reported. Fed Chair Janet Yellen has said that the economy needs to create just under 100,000 jobs a month to keep up with population growth.
Manufacturing sector employment increased by 9,000 jobs in July after adding 15,000 positions in June. Construction payrolls rose 14,000 following three consecutive months of declines. Mining shed a further 7,000 jobs in July. Professional and business services, a high wage sector, added a strong 70,000 jobs last month, the most since last October. Retail sector employment increased by 14,700 jobs and payrolls in the leisure and hospitality sector rose by 45,000.
15:00 – USD : US Labour Market Conditions Survey