UK jobs growth surges as labor market defies Brexit nerves

The number of people in work surged by 222,000, helping to push down the unemployment rate to 3.9 percent. (Reuters)
Updated 19 March 2019

UK jobs growth surges as labor market defies Brexit nerves

  • With the terms of Britain’s exit from the EU still unclear, many businesses have cut long-term investment in equipment
  • The strength of the labor market is pushing up wages more quickly

LONDON: British employers ramped up their hiring at the fastest pace in more than three years in the three months to January as the country’s labor market defied the broader weakness in the overall economy as Brexit approached.
The number of people in work surged by 222,000, helping to push down the unemployment rate to 3.9 percent, its lowest since the start of 1975, official data showed.
A Reuters poll of economists had pointed to a rise in employment of 120,000.
With the terms of Britain’s exit from the European Union still unclear, many businesses have cut long-term investment in equipment, potentially making them more likely to hire workers who can be sacked if the economy sours.
The strength of the labor market is pushing up wages more quickly.
Total earnings, including bonuses, rose by an annual 3.4 percent in the three months to January, the Office for National Statistics said, stronger than a median forecast of 3.2 percent in the Reuters poll.
Wage growth for the three months to December was revised up slightly to 3.5 percent, its highest since mid-2008.
Average weekly earnings, excluding bonuses, also rose by 3.4 percent on the year, in line with the Reuters poll.


Apple warns China virus will cut iPhone production, sales

Updated 18 February 2020

Apple warns China virus will cut iPhone production, sales

  • Apple says demand for iPhones is also down in China because many of Apple’s 42 retail stores there are closed

CUPERTINO, California: Apple Inc. is warning investors that it won’t meet its second-quarter financial guidance because the viral outbreak in China has cut production of iPhones.
The Cupertino, California-based company said Monday that all of its iPhone manufacturing facilities are outside Hubei province, the epicenter of the outbreak, and all have been reopened. But the company said production is ramping up slowly.
“The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues,” Apple said in a statement.
The death toll from COVID-19, a disease caused by the new coronavirus, was 1,770 as of Monday.
Apple says demand for iPhones is also down in China because many of Apple’s 42 retail stores there are closed or operating with reduced hours. China is Apple’s third largest retail market for iPhones, after the US and Europe.
Outside China, Apple said iPhone demand has been strong and is in line with the company’s expectations.
On Jan. 28, Apple said it expected second quarter revenue between $63 billion and $67 billion. Apple’s second quarter ends March 30.
Apple says the situation is evolving and it will provide more information on its next earnings call in April.