Latest published data from the ONS for the UK unemployment data came out 7.9%, marking the highest rate of employment since the ONS started keeping records.
The ONS job market report showed that the number of people out of work dropped by close to 50,000 coming out at 2.53 million during the three months to August while employment reached a record high of close to 30 million.
The number of Britons claiming unemployment saw a marked decline dropping by 4000 in September to 1.57 million. The general market consensus was that the unemployment report would be largely unchanged or come out softer after August’s drop of 8.1% on account of the London Olympics.
Despite the challenging economic conditions in the country, the private sector continued to create jobs with an expected 170k fewer people claiming out of work benefits compared to May 2010.
Previous employment hit a four year high at 8.1% with jobless claims dropping by the highest number in two years. The UK’s economy has been on a zigzag pattern but the resilience has been a puzzle for many left to be cracked.
The average earnings in the UK saw an increase of 1.7% for the months leading up to July.
Read the original report published by the ONS here.
The Sterling fell to a 4 month low against a stronger Euro on Wednesday ahead of the BoE minutes meeting and the UK unemployment data for September. Earlier, investors were speculating that the GBP could weaken further if the BoE October minutes and the UK employment data suggested for more monetary easing.
Ahead of the release, the Euro was up by 0.25% against the GBP at 81.26 pence after reaching a high of 81.37 pence earlier. More gains in the Euro could see the June.
Bank of England October Minutes Meeting
Latest BoE minutes meeting showed that BoE policy makers were split over the question of embarking on more quantitative easing, according to the October minutes meeting.
The Central Bank’s nine member MPC voted unanimously to keep the current asset purchase program as is at 375 million and keeping the key interest rates untouched.
By the time the BoE MPC meets next month, the current asset purchase program would have ended. The general investor consensus was that the BoE would likely expand its asset purchase program by another 50 billion.
Latest data points at the UK existing the recession with the third quarter GDP likely to come out stronger. However weak surveys hint that the Government’s austerity drive could push the economy back into recession. Current inflation is at a 3-year low of 2.2% and despite the possibility of increasing due to rising fuel and utility bills, the overall perception is that the inflation level would be in line with the BoE’s target.
To read the original report from BoE, click here.