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U.K. unemployment rate falls to 7.7% in July, pound spikes

Published 09/11/2013, 04:32 AM
GBP/USD
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Investing.com - The number of people claiming unemployment benefits in the U.K. fell significantly more-than-expected in August, while the country’s jobless rate declined unexpectedly, official data showed on Wednesday.

In a report, the U.K. Office for National Statistics said that the claimant count fell by a seasonally adjusted 32,600 in August, better than expectations for a decline of 22,000 people.

The previous month’s figure was revised to a drop of 36,300 people from a previously reported decrease of 29,200.

The rate of unemployment fell to 7.7% in July from 7.8% in June.

The Bank of England announced plans last month to keep interest rates on hold at record lows as long as the U.K. unemployment rate remains above 7%.

The report also said that the average earnings index rose by a seasonally adjusted 1% in July, in line with expectations, after rising by 1.1% in the previous month.

Following the release of the data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.5% to trade at 1.5810 .

Meanwhile, European stock markets were mixed in rangebound trade. London’s FTSE 100 eased down 0.2%, the EURO STOXX 50 shed 0.1%, France’s CAC 40 dipped 0.15%, while Germany's DAX added 0.4%.  

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