UK unemployment rate beats with 3.9% in June, claims disappoint with +94.4 in July, GBP/USD shakes

The UK has reported mixed labor figures. The unemployment rate remained depressed at 3.9% in June, a result of the government's furlough schemes. Wages dropped by 1.2% when including bonuses and -0.2% when excluding them. 

The Claimant Count Change for July disappointed by leaping by 94,400, far worse than 10,000 projected. That is a concerning sign moving forward. 

GBP/USD dipped just ahead of the publication yet quickly stabilized, trading just below 1.31. See a live GBP/USD chart.

The UK was expected to report an increase in the unemployment rate to 4.2% in June from 3.9% in May. Economists estimated that wages would fall 1.1% year on year when including bonuses in June, a sharper fall than 0.3% in May. Excluding extra pay, a drop of 0.1% was on the cards, compared with an increase of 0.7% beforehand. 

The Claimant Count Change – also known as jobless claims – carried expectations for an increase of 10,000 in July after a drop of 28,100 in June. GBP/USD was trading steadily below 1.31 ahead of the publication, edging up amid some dollar weakness.