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U.K. unemployment rate unexpectedly hits new 11-year low in September

Published 11/16/2016, 04:32 AM
U.K. jobless rate drops to 4.8% vs. 4.9% forecast
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Investing.com - The jobless rate in the U.K. unexpectedly dropped in September, despite the claimant count rising more than expected in October and while wages including bonus rose less than forecast, official data showed on Wednesday.

The Office for National Statistics said that the rate of unemployment unexpectedly fell to 4.8% in the three months to September, beating expectations for it to remain stable for a fifth consecutive month at 4.9%. That level marked a new 11-year low.

The claimant count rose by a seasonally adjusted 9,800 in October, compared to expectations for a increase of 2,000 people, and following an increase of 5,600 a month earlier, whose figure was revised up from a previously reported gain of 700.

Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.3% in the three months to September, compared to forecasts for a 2.3% advance and after increasing by 2.3% in the three months to August.

Excluding bonuses, wages rose by 2.4%, which was in line with forecasts and followed a 2.3% increase in the three months to August.

Following the report, GBP/USD traded at 1.2469 from around 1.2448 ahead of the release of the data, while EUR/GBP was at 0.8601 from 0.8611 earlier.

Meanwhile, European stock markets mixed with the major indices trading slightly lower. London’s FTSE 100 lost 0.32%, the benchmark Euro Stoxx 50 shed 0.30%, France's CAC 40 fell 0.29%, while Germany's DAX traded down 0.33%.

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