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.


Kuwaiti lessor Alafco reaches agreement with Boeing over 737 MAX dispute

Updated 04 August 2020

Kuwaiti lessor Alafco reaches agreement with Boeing over 737 MAX dispute

  • Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery date

DUBAI: Kuwaiti aircraft leasing company Alafco will buy fewer aircraft from Boeing after reaching an agreement to end its legal claim over a canceled 737 MAX order, it said on Tuesday.
Alafco was suing the US planemaker for $336 million over accusations it wrongly refused to return advance payments on a canceled order for 40 of its troubled 737 MAX planes.
The Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery dates, it said in a bourse filing.
Additional details of the agreement could not be disclosed due to confidentiality clauses, it said.
Alafco said it was “looking forward to a long-lasting and mutually beneficial relationship with Boeing.”
Alafco and Boeing did not immediately respond to emailed requests for comment.
Boeing suspended deliveries of its narrow-body 737 MAX jet in March last year, when the Federal Aviation Administration grounded the aircraft after the deaths of 346 people in crashes of two 737 MAX planes operated by Lion Air and Ethiopian Airlines.
The crisis over the grounding of the once top-selling 737 MAX has cost the US planemaker more than $19 billion, slashed production and hobbled its supply chain, with criminal and congressional investigations still ongoing.
Alafco’s owners include Kuwait Finance House, Gulf Investment Corporation and state airline Kuwait Airways, according to its website.