UK Unemployment Rate Declines to 3.8%

Britain’s unemployment rate came in at 3.8% in the three months to December 2023, down by 0.2 percentage point from the prior three-month period, the Office for National Statistics said Tuesday.

The latest reading is below the consensus estimate of 4%. Meanwhile, the UK employment rate rose by 0.2 percentage points to 75% during the quarter.

Wage growth remained a focal point for the Bank of England despite the softer figures for November 2023. The unemployment rate declined from 3.9% to 3.8%, while employment increased by 72k.

Additional details of the report showed that the number of people claiming jobless benefits rose by 14.1K in January when compared to a gain of 5.5K in December.

The British Employment Change data for December stood at 72K, as against a 73K increase in November. Economists forecast employment to rise by 73k and a 4.0% unemployment rate.

Average Earnings excluding Bonus in the UK rose 6.2% 3M YoY in December versus November’s 6.7% increase, beating the market expectations of a 6.0% growth.

Another measure of wage inflation, Average Earnings including Bonuses increased 5.8% in the reported period, compared with a 6.7% increase in November and the expected 5.6% raise. #UK Unemployment Rate Declines to 3.8%#

Nigeria’s External Reserve to Fall to $24bn, IMF Says