UK ILO Unemployment Rate rises to 3.8% in April vs. 3.6% expected

• The Unemployment Rate in the UK rose to 3.8% in April.
• UK Claimant Count Change arrived at -19.7K in May.
• The UK wages excluding bonuses rose by 4.2% YoY in April vs. 4.0% expected.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate rose to 3.8% in April vs. the previous 3.7% and 3.6% expected while the claimant count change showed a smaller than the expected drop last month.

The number of people claiming jobless benefits fell by 19.7K in May when compared to -42.5K expectations and -65.5K booked previously.

The UK’s average weekly earnings, excluding bonuses, arrived at +4.2% 3Mo/YoY in April versus +4.2% last and +4.0% expected while the gauge including bonuses came in at +6.8% 3Mo/YoY in April versus +7.0% previous and +7.6% expected.

Key points (via ONS)

GBP/USD reaction

GBP/USD is fading its rebound amid the mixed UK employment data.

The spot was last seen trading at 1.2182, up 0.37% on the day, having briefly recaptured 1.2200 just ahead of the data release.

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).