Unemployment in UK fell to 6%

Noam Stiekema

The unemployment in UK fell by more than expected in August to its lowest level since the financial crisis now. However, the British still do not feel the economic recovery through revenues. Between June and August the unemployment rate dropped to 6% versus a rate of 6.4% registered in the previous three months to May. […]

unemployment

unemploymentThe unemployment in UK fell by more than expected in August to its lowest level since the financial crisis now. However, the British still do not feel the economic recovery through revenues. Between June and August the unemployment rate dropped to 6% versus a rate of 6.4% registered in the previous three months to May. This happens after another 154 thousand. The British citizens managed to entering the labor force, according to the latest data of the National Statistical Service of UK ONS. The figures were above economists’ expectations for a decline in unemployment to 6.1%.

The number of unemployed totaled 1.97 million people. For the first time the number falls below 2 million people. The last time this had happened also in 2008. Since the beginning of the year the number of unemployed decreased by 538 thousand – the largest annual decline recorded since data collection.

In turn, the employment is now 73%, as its level is close to the historic high of 73.2%, according to more data ONS. Total number of employed amounted to 30.76 million people. On the other hand, the number of unemployed young people aged 16 to 24 fell by 88 thousand. During the period to 733 thousand. Thus reducing youth unemployment to 16%.

“Record data show that long-term economic plan of the government to support businesses in creating jobs and return people back to work is proving to be successful”, said Minister of Labour and Social Policy of Britain Esther McVey. Although each month of the year unemployment yoy, the salaries of the British still do not grow. They even lower if we take into account rising prices. Average weekly working pay only grows by 0.7% in the three months to August, despite of the decreasing prices for office rentals in London. Meanwhile in the same period the inflation rate is almost double.

Excluding bonuses, average weekly wage turns slightly above market expectations. Falling wages means breath for the Bank of England, or in other words – central bankers will not rush with the release of the base rate, now at a record low 0.5%. Moreover, inflation consistently below the target of a financial institution. In September it was 1.2% at an annual inflation target of 2%. Due to these factors, analysts now expect the BoE will raise interest rates as early as mid-2015 instead of in the spring. Exchange rate of the pound to the USD remained static since the publication of data on the labor market. The GBP/USD pair continues to hover around 11-month low reaching 1.5917 USD.

Read this next

Retail FX

Stephen Kalayjian launches educational and community platform TradeEZ

TradeEZ has partnered with online broker TradeZero to provide chart overlays that can be accessed on the TradeZero platform. In the future, the firm will be looking to partner with some of the largest firms around the world.

Retail FX

LiteFinance launches new mobile app on Google Play

The mobile app allows users to trade and copy professional traders’ positions and gain access to trading chat rooms.

Technology

ECXX taps OneTick for data management and analytics

OneTick is asset class-agnostic and currently has customers across FX, equities, futures, CFDs, FI, and options.

Industry News

$1.5 million: SEC fines BNY Mellon Investment Advisor for misstatements and omissions about ESG

Investors are increasingly focused on ESG considerations when making investment decisions.

Digital Assets

Mercuryo reaches 3 million users amid crypto payments’ US and Asia expansion

“The opportunities for linking crypto and fiat currencies are abundant. From crypto projects that require fiat solutions (like fiat on and off ramps and IBANs), through to crypto for traditional fiat systems, and solutions for fintech companies that enable clients to buy or sell crypto within their own infrastructure.”

Retail FX

Maltese watchdog warns of bogus broker Perfect Choice Trade

The Malta Financial Services Authority (MFSA), the regulator responsible for the oversight of the forex  sector in the Mediterranean island, today issued a warning against a forex broker that offers its services without having the authorization to do so.

Digital Assets

Dukascopy warns of fake website impersonating its cryptocurrency

Switzerland’s forex bank and broker, Dukascopy, today warned against a fraudulent website that have been falsely claiming affiliation with its ‎authorized brand.‎

Uncategorized

Freetrade raises £30 million to fund business expansion

Freetrade, which calls itself a challenger stockbroker, has raised £30 million in debt financing led by a clutch of existing investors.

Digital Assets

Crypto assets under management at lowest point since July 2021

Crypto investment products registered outflows for a second consecutive week, the bulk of which came from bitcoin funds, according to data from digital asset manager CoinShares.

<