UK: ILO unemployment rate rose to 3.7% in October, vs. 3.7% expected

• The UK unemployment rate stood at 3.7% in October.
• The change in the number of job applicants was 30,500 in November.
• UK wages excluding bonuses rose 6.1% yoy in October versus 5.9% expected.

According to the latest data released by the National Statistics Office (ONS) on Tuesday, the UK unemployment rate rose from 3.6% to 3.7% in Octoberversus 3.7% expected, while the job applicant count showed an unexpected jump in the reported month.

The number of people applying for unemployment benefits jumped by 30,500 in November compared to -6,400 previously recorded and -13,300 expected.

Median weekly earnings excluding bonuses came in at +6.1% YoY in October vs. +5.8% prior and +5.9% expected, while the indicator including bonuses came in at +6.1% YoY in October vs. +6.0% prior and +6.2% expected.

Key points (via ONS)

“Wage employment increased by 107,000 employees (0.4%) in November 2022 compared to October 2022, although this should be treated as a provisional estimate and will likely be revised when more data is received next month.”

About employment in the UK

Average earnings including bonuses published by National Statistics are a key short-term indicator. This data looks at how pay levels change in the UK economy. It can also be viewed as a measure of basic pay growth. A reading above expectations is bullish for the pound, while a reading below market consensus is bearish.