GBP/USD stays above 1.3600 as UK jobless rate drops to 4.5% in August

• UK claimant count change arrived at -51.1K in September.
• The unemployment rate in the UK dropped to 4.5% in August.
• The UK wages excluding bonuses rose by 6% YoY vs. 5.9% expected.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate matched market expectations, by arriving at 4.5% in August vs. the previous 4.6% and 4.5% expected while the claimant count change showed a small decrease last month from the previous.

The number of people claiming jobless benefits showed a drop of 51.1K in September when compared to -58.6K seen previously. The claimant count rate came in at 5.2% vs. 5.4% last.

The UK’s average weekly earnings, excluding bonuses, arrived at 6% 3Mo/YoY in August versus +6.8% last and +5.9% expected while the gauge including bonuses came in at 7.2% 3Mo/YoY in August versus +8.3% previous and +7.0% expected.

Key points (via ONS)

207,000 more people were in payrolled employment in September 2021 when compared with August 2021.

UK vacancies 1.102 mln in three months to September.

Estimates underlying ex-bonuses earnings growth rate between 4.1% and 5.6% but stresses uncertainty.

GBP/USD reaction

GBP/USD keeps the advance above 1.3600 amid the upbeat UK jobs report.

The spot was last seen trading at 1.3605, up 0.08% on the day, courtesy of the latest leg down in the US dollar across its main peers.

About UK jobs

The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).