United Kingdom: Unemployment remains unchanged in the three months up to August
October 16, 2013
According to the Office for National Statistics (ONS), jobless claims fell 41,700 over the previous month in September, reaching the lowest level in nearly five years. September's decrease was slightly more than the 41,600 claim drop recorded in August and significantly overshot the 25,000 claim drop the markets had expected.
The unemployment rate - derived from a different survey - remained at 7.7% in the three months up to August, matching both the figure recorded in the May-July period and market expectations. The unemployment level remains above the 7.0% threshold introduced by the Bank of England (BOE) at its 3-4 July monetary policy meeting, when the Bank committed 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