The morning publications by the British Office of National Statistics regarding the UK’s employment sector highlighted the deep structural deficiencies in the labor market which the Confederation of British Industry (CBI) noted in their recent report. The number of British residents filing for unemployment benefits for the first time rose by 19,600 this past month, well above the forecasts that called for 7,100 claims.
Additionally, the Average Hourly Earnings Index grew less than expected, climbing only 1.8% over the last 3 months. Analysts were expecting an earning’s index boost of 2.1%. The British employment sector appears to be in bad shape and so far the effect has gouged the British pound’s (GBP) value against several currency rivals. The sterling was seen in decline against several other currencies and leveling off against others. If the labor market’s structural weaknesses are not addressed soon, the UK may find itself in a losing position as 2011 reaches moves beyond its mid-point.
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