The UK’s ILO unemployment rate was unchanged at 3.8% in June, in line with estimates

• The UK unemployment rate held steady at 3.8% in May.
• The number of claimants in the UK rose to -10.5 thousand in July.
• Unfree wages in the UK rose 4.7% month-on-month in June. 4.5% expected.

The Office for National Statistics (ONS) said on Tuesday that the UK’s official unemployment rate was unchanged at 3.8% in June. Expectations, while the number of applicants fell less than expected last month.

The number of people who applied for unemployment benefits decreased by 10.5K in July, compared to -20K previously booked and -32K expected.

UK average weekly earnings excluding bonuses were +4.7% in June compared to +4.3% in the previous month and +4.5% in the same month last year, while the figure including bonuses was +5.1% in June compared to + 6.2% in the previous month and +4.5% in the same month last year.

Key Points (via ONS)

“The labor force increased by 160,000 in the April-June period, which is much lower than a Reuters poll that had expected an increase of 256 thousand.”

“The number of job vacancies decreased for the first time since mid-2020.”

GBP/USD reaction

GBP/USD takes comfortably mixed UK jobs data and settles at 1.2050 (as of today).

About UK Jobs

UK median income, published by the Office for National Statistics (ONS), is an important short-term indicator of how wage levels are developing in the UK economy. In general, positive income growth is seen as positive (or bullish) for the GBP, while a lower reading is seen as negative (or bearish).