All articles tagged with #wage data
Asian stocks were mixed on Wednesday as investors awaited more interest rate cues. Japanese markets fell due to strong wage data raising fears of tighter monetary policy, while Australian stocks rose despite weak GDP data. Indian shares faced losses following an election shock, and other Asian markets showed varied performance.
Despite evidence suggesting that the labor market has stabilized, including a decrease in quits and a labor leverage ratio indicating a willingness to leave jobs for higher pay, other data paints a different picture. Job openings may not be as real as they seem, with analysts suspecting an increase in fake openings during the pandemic. Additionally, wage data from the Atlanta Fed shows that not everyone is keeping up with inflation, and over 100% of the increase in employment since 2020 is attributed to foreign-born workers. The surge in government jobs to handle immigration further challenges the notion of a strong job market, indicating potential underlying weaknesses.
The pound remained steady after UK wage data showed strong growth in July despite a weakening labor market, creating uncertainty ahead of the Bank of England's decision next week. Wages excluding bonuses rose 7.8% compared to the previous year, in line with expectations, while wages including bonuses increased to 8.5%. The unemployment rate ticked up to 4.3%. The data puts the Bank of England in a difficult position, with some policymakers suggesting it is too soon to stop raising interest rates. Traders are pricing in an 82% chance of a rate hike next week.