UK jobless rate drops to 4.2% in October vs. 4.2% expected

• UK claimant count change arrived at -49.8K in November.
• The unemployment rate in the UK dropped to 4.2% in October.
• The UK wages excluding bonuses fell to 4.3% YoY vs. 4.0% expected.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate matched market expectations, by arriving at 4.2% in October vs. the previous 4.3% and 4.2% expected while the claimant count change showed a big drop last month from the previous.

The number of people claiming jobless benefits showed a drop of 49.8K in November when compared to -14.9K registered previously. The claimant count rate came in at 4.9% vs. 5.0% last.

The UK’s average weekly earnings, excluding bonuses, arrived at 4.3% 3Mo/YoY in October versus +5.0% last and +4.0% expected while the gauge including bonuses came in at 4.9% 3Mo/YoY in October versus +5.9% previous and +4.5% expected.

Key points (via ONS)

GBP/USD reaction

GBP/USD keeps the rebound intact above 1.3200 on the upbeat UK jobs report.

The spot was last seen trading at 1.3213, down 0.04% on the day, courtesy of a pause in the US dollar buying across the board.

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).