United Kingdom: Unemployment declines, moves closer to Bank of England's threshold
November 13, 2013
According to the Office for National Statistics (ONS), jobless claims fell 41,700 over the previous month in October, down from the revised 44,700 drop recorded in September (previously reported: 41,700). However, October's figure was above the 30,000 decrease in jobless claims the markets had expected.
The unemployment rate - derived from a different survey - inched down to 7.6% in the three months up to September, which matched market expectations. The figure was slightly below the 7.7% recorded in the three months up to August. As a result, the unemployment level is now slightly closer to the 7.0% threshold introduced by the Bank of England (BOE) at its 7 August monetary policy meeting at which the Bank made a commitment to keep interest rates on hold until unemployment falls below the threshold.
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%, which is down 0.1 percentage points from last month's estimate.
Author: Dirina Mançellari, Senior Economist