UK unemployment rate softens after no change forecast

UK average earnings increased more than expected in the February quarter, the Office for National Statistics reported on Tuesday.

The average ILO unemployment rate for the three months ended February was 4.9%, down from 5.2% for the prior few months and below the FXStreet-cited consensus for another 5.2% reading.

Employment for the three-month period increased by 25,000 people, down from 84,000 in the three months ended January.

Average earnings excluding bonuses increased 3.6%, slowing from 3.8% the previous quarter but surpassing the consensus estimate of 3.5%. Including bonuses, they rose 3.8%, more than the expected 3.6% but less than the prior growth of 4.1%, revised upwards from 3.9%.

The number of people claiming unemployment benefits increased by 26,800 in March, higher than the consensus estimate of 21,400 people and above February’s 17,100 increase, revised downwards from 24,700.

The claimant count rate increased to 4.4% in March from 4.3% in February, which was downwardly revised from 4.4%.

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