UK Unemployment Rate rises to 3.9% in quarter to January vs. 3.8% expected

• The UK Unemployment Rate climbed to 3.9% in the quarter to January.
• The Claimant Count Change for Britain arrived at 16.8K in January.
• GBP/USD tests lows near 1.2800 after mixed UK jobs data.

The United Kingdom’s (UK) ILO Unemployment Rate rose to 3.9% in three months to January, a tad higher than the 3.8% in December, data published by the Office for National Statistics (ONS) showed Tuesday. The market expectations were for a 3.8% print in the reported period.

Additional details of the report showed that the number of people claiming jobless benefits rose by 16.8K in February when compared to a gain of 3.1K in January. The market forecast was for a 20.3K increase in the reported period.

The British Employment Change data for January arrived at -21K, as against a 72K rise in December.

Average Earnings excluding Bonus in the UK rose 6.1% 3M YoY in January versus December’s 6.2% increase, missing the market expectations of a 6.2% growth.

Another measure of wage inflation, Average Earnings including Bonus increased 5.6%  in the reported period, compared with a 5.8% increase in December and the expected 5.7% growth.

GBP/USD reaction to the UK employment report

GBP/USD dropped to test 1.2800 on discouraging UK employment data. The pair is trading 0.05% lower on the day at 1.2805, as of writing.