UK ILO Unemployment Rate rises to 3.8% in February vs. 3.7% expected
18.04.2023, 06:01

UK ILO Unemployment Rate rises to 3.8% in February vs. 3.7% expected

  • The British Unemployment Rate unexpectedly rises to 3.8% in February.
  • UK Claimant Count Change came in at 28.2K in March.
  • The UK wages excluding bonuses advances to 6.6% YoY in February vs. 6.2% expected.

The latest data released by the Office for National Statistics (ONS) showed on Tuesday that the United Kingdom’s (UK) ILO Unemployment Rate climbed to 3.8% in February vs. the 3.7% expected while the claimant count change showed a surprise increase in the reported month.

The number of people claiming jobless benefits jumped by 28.2K in March, compared with -11.8K expected and -18.8K booked previously.

The UK’s average weekly earnings, excluding bonuses, arrived at 6.6% 3Mo/YoY in February versus 6.6% prior and 6.2% expected while the gauge including bonuses stood at 5.9% 3Mo/YoY in the second month of the year versus 5.9% previous and 5.1% expected.

Key points (via ONS)

UK March payrolls change 31k vs. 98k prior, revised to 39k.

UK economic inactivity rate decreased by 0.4 percentage points on the quarter to 21.1% in Dec-Feb period.

UK vacancies fell by 47,000 to 1.105 mln in three months to March.

Fall in inactivity reflects fewer students, inactivity due to sickness rose to new record.

348,000 working days lost because of labor disputes in february 2023, up from 210,000 in January 2023.

GBP/USD reaction

GBP/USD picks up fresh bids to briefly recapture 1.2400 on the mixed UK employment data before retreating to 1.2397, where it now wavers. The pair is up 0.18% 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).

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