October 12, 2021

UK Unemployment Rate Down Again! What is the Reaction of the Pound?

 The market in the European session was marked by the publication of UK employment data which recorded a mixed reading in August.

According to a report by the National Statistics Office (ONS), the unemployment rate met market expectations to decline to 4.5% in the three months to August, a one -year low.

Meanwhile, employment in the UK reportedly increased by 207,000 workers in September, bringing it to its highest level before the government’s wage subsidy program ended.

Vacancies continued to rise to an all -time high of 1.1 million, with the largest increase seen in the accommodation and food services sectors.

Finance Minister Rishi Sunak said the government was committed to helping people find jobs after the end of the government employment scheme at the end of September.

The average weekly income was 7.2% higher than the same three months in 2020, but slightly slower than the previous reading of 8.3%.

However, the pound failed to react following the publication of this data, with it trading little changed around the price of 1.3600 against the USD.

The currency has previously garnered support from statements by two Central Bank of England (BOE) policymakers signaling for an interest rate hike in response to high energy price hikes.