UK Unemployment Rate steadies at 4.1% in December vs. 4.1% expected

The unemployment rate in the UK remained unchanged at 4.1% in December.
UK claimant count change arrived at -31.9K in January.
The UK wages excluding bonuses fell to 3.7% YoY 3.6% expected.

Dhwani Mehta FXStreet

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate arrived at 4.1% in December vs. the previous 4.1% and 4.1% expected while the claimant count change showed a smaller than previous drop last month.

The number of people claiming jobless benefits fell to -31.9K in January when compared to -51.6K booked previously. The claimant count rate came in at 4.6% vs. 4.6% last.

The UK’s average weekly earnings, excluding bonuses, arrived at 3.7% 3Mo/YoY in December versus +3.8% last and +3.6% expected while the gauge including bonuses came in at 4.3% 3Mo/YoY in December versus +4.2% previous and +3.9% expected.

Key points (via ONS)

“In quarter four (Oct to Dec) 2021, output per hour worked was 2.3% above levels recorded prior to the coronavirus.”

“Output per worker was above the 2019 average level for the first time since the coronavirus pandemic began, growing 0.8% on 2019 and 1.1% quarter-on-quarter.“

“The UK output per hour worked +0.5% QoQ, +1.0% YoY in Q4 2021.”

GBP/USD reaction

GBP/USD keeps its range intact at around 1.3530 on the upbeat UK jobs report.

The spot was last seen trading at 1.3537, up 0.09% 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, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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