Wednesday preview: UK jobs data may show hiring slowdown in wake of Brexit

UK jobs data on Wednesday is expected to show a slowdown in hiring amid uncertainty surrounding the Brexit vote.

The data from the Office for National Statistics is forecast to reveal UK employers added just 70,000 jobs in the three months to August after 174,000 jobs in three months to July.

The unemployment rate is estimated to have held at 4.9% during the quarter. Average weekly earnings are expected to have seen growth of 2.3%, the same as the preceding period.

In September, the number of jobless claims are projected to have risen 3,200 compared to a 2,400 increase in August. The claimant count rate is forecast to have remained at 2.2% last month.

The report comes as business confidence has taken a hit after Britain voted to leave the European Union on 23 June. Brexit’s impact on employment and the number of jobless should be better known in Wednesday’s data.

The Bank of England has said it expects unemployment will rise to 5.5% over the next two years due to Brexit.

However, analysts don't see it having too much of an effect on the labour market just yet as formal Brexit negotiations won't happen until Article 50 is triggered. Prime Minister Theresa May has said she would invoke Article 50 by March 2017.

"Even if cracks start to show, the headline numbers should still look relatively strong," HSBC said on Wednesday's data.

“The unemployment rate is likely to be unchanged at 4.9% in this release. And we expect wage growth to be little changed.”

Wednesday 19 October

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Datatec Ltd. (DI), U And I Group

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Forterra, Good Energy Group, Hunters Property , IDOX, Non-Standard Finance, Somero Enterprises Inc. (DI), Standard Life

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Assura

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Building Permits (US) (13:30)
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