LONDON, Dec. 14 (Xinhua) -- Britain's three-month average unemployment rate
was unchanged at 4.8 percent in October, figures released on Wednesday show, but
there was a surprise fall in employment.
The drop in employment of 6,000 in the three months to October revealed in
the Office for National Statistics (ONS) figures, countered expert consensus
which expected a growth of 50,000 jobs.
The continued solidity of the employment market was expected -- and is in
line with other major developed nations such as Germany (4.1 percent), and the
United States (4.8 percent) -- but the fall in employment figures has surprised
to the downside, and is the first fall since the second quarter of 2015.
"Today's UK labour market figures revealed some clearer signs that the recent
resilience is fading," said Paul Hollingsworth, British economist at Capital
Economics.
The steadiness of the unemployment rate of 4.8 percent was down to a rise in
inactivity, and a more accurate impression of the labor market is shown in the
monthly November unemployment figures, which rose 2,400.
Business is worried over the future state of the labor market as it enters
2017, a year likely to be characterised by uncertainty over Brexit declaration
and ensuing negotiations with the European Union (EU). These may weigh heavy on
business.
Suren Thiru, head of economics at the industry representative body British
Chambers of Commerce said: "There are signs that the UK labor market may be
beginning to cool, with a small fall in employment and the continued rise in the
claimant count measure.
"It is likely that UK unemployment will start to drift upwards in the coming
months, as uncertainty over Brexit and the increasing input costs faced by
businesses weigh on jobs growth."
Thiru said the BCC expected unemployment to rise over the coming year,
peaking in early 2018 at 5.5 percent. Although this is a significant rise, it is
still well below the long-term average.
In simultaneously released figures, wage growth continues strongly, remaining
above CPI inflation (1.2 percent for November).
The annual growth rate in three-month average weekly earnings including
bonuses rose from 2.4 percent to 2.5 percent.
However, most forecasters anticipate that the sharp fall in sterling on
foreign exchange markets since the June 23 Brexit vote -- contributing to a 16
percent fall in the pound against the dollar -- will feed through to increased
prices through higher import costs and increased prices of commodities, which
are frequently priced in dollars.
Elizabeth Martins, economist at HSBC, said that the future upward trajectory
of inflation was a worry. If it overhauled wage growth inflation would impact on
consumer spending which is currently driving the British economy.
"We are worried about the impact of rising inflation. CPI inflation yesterday
came in higher than expected, rising to 1.2 percent year-on-year in November,
from 0.9 percent in October. The impact of sterling weakness appears to be
feeding through, and not just to petrol but also -- according to the November
numbers at least -- to food, clothing and computers."
Martins said she believed inflation would outpace nominal wage growth,
hitting real incomes and bearing down on consumption. Enditem
China on Wednesday put one of the world's longest high-speed railways into
operation, linking the country's prosperous eastern coast with the
less-developed southwest.
The Shanghai-Kunming line -- 2,252 km in length -- traverses five provinces,
Zhejiang, Jiangxi, Hunan, Guizhou and Yunnan, and cuts the travel time from
Shanghai to Kunming, capital city of Yunnan Province, from 34 to 11 hours,
according to China Railway Corporation.
A
test train in seen on the Guizhou West section of the Shanghai-Kunming
high-speed railway, Dec. 17, 2016. China on Wednesday put into operation one of
the world's longest high-speed railways
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linking the country's prosperous eastern coast to the less-developed southwest.
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of Zhejiang, Jiangxi
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(XinhuaOu Dongqu) A woman (L) of the Drung ethnic group from Yunnan
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railway
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Outlet , Dec. 28, 2016. China on Wednesday put into operation one
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