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.

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).