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.
Read more forex trading news on our forex blog.
Other relevant articles you may like
Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
