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U.K. unemployment rate unexpectedly drops to lowest level since 1975

Published 17/05/2017, 09:32
© Reuters.  U.K. jobless rate: 4.6% vs. 4.7% forecast
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Investing.com - The jobless rate in the U.K. unexpectedly fell lower in March, although April’s claimant count increased more than expected, official data showed on Wednesday.

The Office for National Statistics said that the rate of unemployment unexpectedly fell to 4.6% in March, beating expectations for it to remain stable at February’s reading of 4.7%. That was its lowest level since 1975.

However, the claimant count increased by a seasonally adjusted 19,400 in April, compared to expectations for a gain of 7,500 people and following a rise of 33,500 a month earlier, whose figure was revised from a previously reported reduction of 25,500.

Meanwhile, the average earnings index, including bonuses, rose as expected by a seasonally adjusted 2.4% in the three months to March, compared to February’s gain of 2.3%.

Excluding bonuses, wages rose by 2.1% in the three months to March, missing forecasts for it remain in line with February’s 2.2% advance.

“The recent increase in consumer price inflation including owner occupiers’ housing costs has seen the annual rate of real wage growth (excluding bonuses) turn negative for the first time since the three months to September 2014,” the ONS added in the report.

Following the report, GBP/USD traded at 1.2935 from around 1.2931 ahead of the release of the data, EUR/GBP was at 0.8572 from 0.8577 earlier, while GBP/JPY remained unchanged at 145.47.

Meanwhile, European stock markets continued trading mixed. London’s FTSE 100 inched up 0.02%, the benchmark Euro Stoxx 50 lost 0.30%, France's CAC 40 fell 0.39%, while Germany's DAX traded down 0.21%.

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