The UK labor market is very tight which explains today’s reported increase in average weekly earnings which expanded by 3.0% annualized for the three-month period ending in September. Excluding bonuses, the increase was reported at 3.2% annualized. This marked the fastest expansion since December 2008. The unemployment rate was reported at 4.1%, up from the previous month’s 43-year low of 4.0%. While wages are expanding, output per working hour is lagging and only expanded by 0.1% in the third-quarter while hours worked rose by 1.0%.