- The British Unemployment Rate unexpectedly rises to 3.9% in the three months to March.
- UK Claimant Count Change came in at 46.7K in April.
- The UK wages excluding bonuses rose 6.7% YoY in March, less than the 6.8% expected.
The latest data released by the Office for National Statistics (ONS) showed on Tuesday that the United Kingdom’s (UK) ILO Unemployment Rate rose to 3.9% in the quarter to March from the 3.8% registered in the three months to February, above the 3.8% expected. This is the highest reading in more than a year, and signals that the UK labor market is gradually cooling down.
The claimant count change also showed an unexpected increase. The number of people claiming jobless benefits jumped by 46.7K in April, compared with an expected 10.8K decline and after a 26.5K increase the previous month.
The UK’s average weekly earnings, excluding bonuses, arrived at 6.7% 3Mo/YoY in March versus 6.6% prior and 6.8% expected. The gauge including bonuses came in at 5.8% 3Mo/YoY in the third month of the year versus 5.8% previous and 5.1% expected.
Key points (via ONS)
UK vacancies fell by 55,000 in three months to April.
UK economic inactivity rate decreased by 0.4 percentage points on the quarter to 21.0% in Q1.
UK LFS unemployment +60k to 1.329 mln 3m/3m in Q1.
The UK Minister for Employment, Guy Opperman MP told FXStreet: "We're continuing to see progress in the labour market as we take action across government to grow the economy. Employment is up; economic inactivity is down; and vacancies have fallen in successive quarters.”
"As well as helping deliver on our priority to grow the economy, we know that being in work remains the best way for people to get on in life. That's why I'm focused on matching jobseekers with roles, and businesses with a resilient and skilled workforce. Through partnerships with local employers, we have thousands of placements in sectors such as banking and engineering, helping people to achieve new qualifications and build rewarding careers,” the minister added.
GBP/USD reaction
GBP/USD came under renewed bearish pressure and gave up 1.2500 on the mixed UK employment data. The pair is trading 0.29% lower on the day at 1.2492, as of writing.
About UK jobs
The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.