United Kingdom: Unemployment falls unexpectedly in the three months up to July
September 11, 2013
According to the Office for National Statistics, jobless claims fell 32,600 in August over the previous month. Fewer claims were recorded in August compared to the 36,300 decrease recorded in July and the print was far greater than the 21,000 claim drop the market had expected.
The unemployment rate - derived from a different survey - fell to 7.7% in the three months up to July, its lowest level since the September-November 2012 period. The figure was slightly below the 7.8% unemployment rate the market had expected and was on par with the figure recorded in the April-June 2013 period. The drop moved unemployment closer to the 7.0% threshold introduced by the Bank of England (BOE) at its 3-4 July monetary policy meeting.
FocusEconomics Consensus Forecast panelists expect unemployment to average 7.8% this year, which is unchanged from last month's forecast. For 2014, the panel expects the unemployment rate to drop to 7.6%.
Author: Dirina Mançellari, Senior Economist