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Rise in UK job vacancies for five months in a row likely to fan inflation

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10 months ago

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A rise in job vacancies in the United Kingdom was seen for the fifth month in a row, which is likely to fan inflation as it signalled wage growth and stress in the labour market, Bloomberg reported citing a report by an employment website. 

The data given in the report by Adzuna released on Monday is based on every job advertisement in the Kingdom across 1,000 sources.

As many as 1.06 million vacancies across UK were listed on the job search site Adzuna in the month of June, which was 0.78% more than the previous month but lower than the same month in 2022.

As per the data, the advertised salaries witnessed a 3.6% rise as compared to the last year, while the number of days to fill the job openings dropped to a record low.

This showed that employers are still having a hard time hiring the required staff. A likelihood of biding up the wages was also observed which will consequently add to the risks of an inflationary spiral.

As per the report, the Bank of England (BOE) is closely monitoring UK’s job market to have an estimate of how much it further needs to jack up the interest rates to evade a wage-price spiral.

“Despite the recent small rises in unemployment, the labor market is still incredibly tight,” Institute of Employment Studies official Tony Wilson said in the Adzuna report.

A recent report stated that UK saw a 4% hike in national unemployment.

“This poses risks for future inflation. It’s also a reminder that the economy is still creating a lot of opportunities and many of them well paid,” Wilson added.

The numbers from Adzuna stand in stark contrast to those from Reed Recruitment, which revealed that in the three months leading up to May, vacancies in England decreased by roughly a third from their post-pandemic high.

Earlier this month, Chairman James Reed stated that chances of the UK entering a recession have increased due to a “significant” fall in listings over the previous year.

However, Adzuna co-founder seemed optimistic about the outlook for the economy.

“If hiring trends continue to improve, we could be back at the record hiring levels we saw in 2022 by the end of the year.” Hunter said in a statement. “Competition is high amongst employers looking to snap up the best candidates.”

Over the same time period, wage growth surged to 7.3% from a year earlier, beyond the level of comfort, BOE claims is consistent with its 2% inflation target.

London remained the only part of the country without a bump in pay. The biggest annual salary increase was recorded in property, a sector which saw a decline in vacancies year on year.

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Pakistan’s gold prices are still declining; see the most recent

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4 days ago

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The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

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Pakistan and the IMF begin talks for a new loan.

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4 days ago

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Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

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Petrol prices are likely to drop significantly beginning May 16.

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4 days ago

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According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.

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