UK Unemployment Rate drops to 3.9% in January vs. 4.0% expected

• The Unemployment Rate in the UK dropped to 3.9% in January.
• UK Claimant Count Change arrived at -48.1K in February.
• The UK wages excluding bonuses rose to 3.8% YoY in January vs. 3.7% expected.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate arrived at 3.9% in January vs. the previous 4.1% and 4.0% expected while the claimant count change showed a bigger than previous drop last month.

The number of people claiming jobless benefits fell by 48.1K in February when compared to -31.9K booked previously. The claimant count rate came in at 4.4% last month vs. 4.6% prior.

The UK’s average weekly earnings, excluding bonuses, arrived at 3.8% 3Mo/YoY in January versus +3.7% last and +3.7% expected while the gauge including bonuses came in at 4.8% 3Mo/YoY in January versus +4.3% previous and +4.6% expected.

Key points (via ONS)

GBP/USD reaction

GBP/USD is fading its rebound despite the upbeat UK employment data.

The spot was last seen trading at 1.3035, up 0.27% 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).