Employment 296k vs Reuters poll forecast 170k
Jobless rate holds at 3.8 despite expectations for a rise
More people return to labour market
Regular pay growth edges up but lags far behind inflation
Bank of England watching for inflation heat in jobs market

LONDON, July 18 Reuters The number of people in work in Britain jumped by the most since mid2021 in the three months to May and the unemployment rate held near a halfcentury low, suggesting the costofliving squeeze has not yet hit demand for staff.

With the Bank of England worried about the risk of inflationary heat in the labour market, official data also showed more people were available for work, possibly weakening the case for a biggerthanusual BoE rate hike next month.

The Office for National Statistics reported an increase of 296,000 in the number of people in employment, the most since the three months to August last year.

A Reuters poll of economists had pointed to a smaller increase of 170,000.

The jobless rate held at 3.8, defying a forecast in the poll for it to rise to 3.9.

While the size of the workforce remains below its level just before the COVID19 pandemic, the number of people in fulltime employment hit a record high, in contrast to the number of selfemployed people which remains lower.

The signs of continued strong hiring may bolster the BoE39;s confidence about raising interest rates for the sixth time since December next month as it tries to tackle the surge in inflation towards…