UK ILO Unemployment Rate steadies at 3.7% in January vs. 3.8% expected

• The Unemployment Rate in the UK held steady at 3.7% in January.
• UK Claimant Count Change came in at -11.2K in February.
• The UK wages excluding bonuses eased to 6.5% YoY in January vs. 6.6% expected.

The latest data released by the Office for National Statistics (ONS) showed on Tuesday that the United Kingdom’s (UK) ILO Unemployment Rate came in at 3.7% in January vs. the 3.8% expected while the claimant count change showed a smaller-than-expected decline in the reported month.

The number of people claiming jobless benefits fell by 11.2K in February when compared to -12.4K expected and -30.3K booked previously.

The UK’s average weekly earnings, excluding bonuses, arrived at 6.5% 3Mo/YoY in January versus 6.7% last and 6.6% expected while the gauge including bonuses stood at 5.7% 3Mo/YoY in January versus 6.0% previous and 5.7% expected.

Key points (via ONS)

In February 2023, 98,000 more people were in payrolled employment when compared with January 2023.

UK LFS employment +65k 3m/3m in 3 months to Jan.

UK February payrolls change 98k vs. 102k previous.

GBP/USD reaction

GBP/USD remains unfazed by the mixed UK employment data, keeping its range around 1.2170, as of writing. The pair is down 0.08% on the day.

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).