- The UK jobless claims count for December rose +7,000 from +35,000 expected.
- UK wages, excluding bonuses, were up 3.6% year-on-year versus 3.2% expected.
- The unemployment rate in the UK rose to 5.0% in November.
The Office for National Statistics (ONS) showed Tuesday that the UK’s official unemployment rate increased to 5.0% in November from 4.9% in the previous month and below the 5.1% forecast, while the change in the count of jobless claims showed a less than expected increase in December.
The number of people applying for unemployment benefits increased by 7,000 in December, much better than expectations of + 35,000 and falling from 38,1000 the previous month.
UK average weekly earnings, excluding bonuses, have reached + 3.6% in the three months YoY in November, rising from the previous + 2.8% and above the expected + 3.2%, while the indicator that includes bonuses has reached + 3.6% in the three months year-on-year in November, also rising from the previous + 2.8% and above of the + 2.9% expected.
Key points (via ONS):
Since February 2020, the number of employees on the payroll has dropped by 828,000.
The number of layoffs reached an all-time high between September and November 2020.
The number of people temporarily out of work has decreased since its peak in April and May 2020.
The number of people temporarily out of work has increased slightly in November.
The recovery of job vacancies has slowed from October to December 2020.
Current average wage growth rates are hitting upward by a drop in the number and share of lower-paid jobs, compared to before the coronavirus pandemic.
About average income in the UK
Average earnings published by National Statistics are a key short-term indicator. This data analyzes how payment levels change in the UK economy. It can also be viewed as a basic pay growth measure. A reading above expectations is bullish for the pound, while a reading below the market consensus is bearish.
GBP / USD reaction
The upbeat UK employment data has not affected the price action of the British pound, with the GBP / USD pair pressed below the 1.3650 level and shedding 0.25% on the day.
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