The United Kingdom's labor market is currently navigating a period of mixed signals, as recent data from the Office for National Statistics (ONS) reveals a complex landscape. The ILO unemployment rate for the three months to June 2025 remained unchanged at 4.7%, consistent with market expectations. This stability comes alongside a significant increase in employment, with a 239K rise in employment change over the three months to June, surpassing previous figures and estimates.
Despite these positive indicators, the ONS reported a monthly decrease of 8K in payrolled employees for July, following a larger decline of 41K in the previous month. Liz McKeown, ONS Director of Economic Statistics, commented that these figures collectively "point to a continued cooling of the labour market." Furthermore, the claimant count change saw a favorable reduction of 6.2K in July, a notable improvement from the prior month's increase.
Wage growth in the UK also showed signs of moderation. Average weekly earnings, including bonuses, slowed to 4.6% year-on-year in June, falling short of the 4.7% estimate and down from 5.0% in May. However, average weekly earnings excluding bonuses held steady at 5.0% year-on-year, matching both expectations and the previous month's figure. These wage dynamics will be closely watched by the Bank of England as it assesses future monetary policy.
In global investment news, the Norwegian Sovereign Wealth Fund, the world's largest, has declared its intention to continue reducing its portfolio in Israel. The $2 trillion fund announced it has sold stakes in 11 Israeli companies and is terminating contracts with Israeli asset managers. Nicolai Tangen, CEO of Norges Bank Investment Management, stated that these measures were taken in response to "extraordinary circumstances" and the "serious humanitarian crisis" in Gaza and the West Bank. The fund previously held investments in 61 Israeli companies at the end of the first half of the year.
Meanwhile, the United States is facing a pivotal debate concerning its workforce and immigration policies, particularly regarding H-1B visas. Analysts are predicting a potential shift away from reliance on these visas as advancements in Artificial Intelligence (AI) are increasingly capable of replacing many white-collar roles. This evolving technological landscape is transforming the immigration debate into a broader battle over automation and its impact on the American job market.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.