UK jobs: quite peculiar - Scotiabank

Analysts at Scotiabank explained that the UK Labour report for March/April included some peculiar numbers.

Key Quotes:

"Wages including bonuses were strong (+1.2% m/m with revisions) bringing wages to roughly 2% y/y. However, wages ex-bonus were much lower than expected
with the year-on-year figures slipping from 2.2% to 2.1%."

"Employment increased by +44k over the three months through March - a much better than expected outcome which defies worries of pre-referendum economic uncertainty. Our UK fixed income strategy points out that it’s hard to find too many takeaways from the numbers: The main one (and probably most important in the context of the MPC) would be that the BoE's end-year forecast for wages of 3% y/y is still within reach thanks to this miraculous bounce in bonus payments."