Households will be further squeezed as total pay growth stood at just 0.4 per cent, while inflation is currently at 2.8 per cent, eating into real wages.
Jobless claims looked slightly better dropped by 7,300 in April while analysts had expected claims to fall by just 3,000. The claimant count rate slipped from 4.6 per cent to 4.5 per cent.
Employment was 29.71m Jan-March, down 43k from Q4. Starting to look like jobs bounce-back ended. Real wages collapsing even faster.— Allister Heath (@AllisterHeath) May 15, 2013