UK ILO Unemployment Rate holds steady at 3.8% in June, matches estimates

  • The Unemployment Rate in the UK steadied at 3.8% in May.
  • UK Claimant Count Change arrived at -10.5K in July.
  • The UK wages excluding bonuses rose by 4.7% YoY in June vs. 4.5% expected.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate stood unchanged at 3.8% in June vs. 3.8% expected while the claimant count change showed a less than expected drop last month.

The number of people claiming jobless benefits dropped by 10.5K in July when compared to -20K booked previously and -32K expectations.

The UK’s average weekly earnings, excluding bonuses, arrived at +4.7% 3Mo/YoY in June versus +4.3% last and +4.5% expected while the gauge including bonuses came in at +5.1% 3Mo/YoY in June versus +6.2% previous and +4.5% expected.

Key points (via ONS)

“The number of people in employment grew by 160,000 in the April-June period, a lot less than expected in the Reuters poll which had pointed to an increase of 256,000.”

“The number of job vacancies fell for the first time since mid-2020.”

GBP/USD reaction

GBP/USD shrugs off the mixed UK employment data, as it holds steady at 1.2050, 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, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).

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