Aberdeen: UK labour market figures slightly stronger

Aberdeen: UK labour market figures slightly stronger

October 20, 2026

UK Labor force

Felix Feather, Economist at Aberdeen Investments, comments on the UK labour market figures released this morning:

'This month’s UK labour market data were a mostly a touch stronger, breaking a run of soft reports. Importantly, PAYE payrolls, which give the most timely indication of net hiring, now show signs of stabilisation over August and September, after six months in contraction. For the Bank of England there are few immediate implications. Private sector earnings excluding bonuses – a measure the Bank watches closely – expanded 3% on the year, in line with expectations. That, broadly speaking, is a rate consistent with the Bank’s 2% inflation target, and shows little sign of faster energy inflation feeding into wage demands. So unless tomorrow’s CPI report throws up a major surprise, we will be sticking with our call for the Bank raise interest rates by 0.25% in November.'

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