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UK unemployment, jobless benefits rise

UK unemployment and jobless benefits rise

U.K. unemployment report released on Tuesday showed that the unemployment rate rose from record low and jobless benefits surged more than forecast.  

Unemployment rate soared to 3.9 percent in the three months through January, rising from 3.8, which was the lowest level since January 1975. That came above analysts’ projections of 3.8 percent.

Jobless benefits for the month of February shot up to 17,100 from a revised of minus 200 in January, compared to forecasts of 6,200 surge.

On the upside, average earrings including bonuses rose 3.1 percent in the quarter-ended January from a year earlier, surpassing forecasts of 3.0 percent and accelerating from a prior of 2.9 percent. Excluding bonuses, pay growth slowed to 3.1 percent year-on-year from a previous of 3.2 percent.

As of 09:58 GMT, the pound traded lower versus the dollar at 1.2170, after hitting its lowest level since September last year at 1.2155.

It is worth mentioning that the pound has been falling since touching a peak of $1.3199 on March 9, amid the panic of the coronavirus and expectations the BOE would launch quantitative easing measures.

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