UK unemployment rate steady

Number of jobless claims fall | Published: March 20, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

LONDON, Mar 19Â (Reuters) :Â Britain's jobless rate was stable in the three months to January, but the number of people claiming unemployment benefits fell more than expected and earnings showed signs of picking up.
The jobless rate was unchanged at 7.2 per cent, as expected in a Reuters poll. It had edged up to that level in the three months to December - its first increase since February 2013.
The number of people claiming unemployment benefits fell by 34,600, more than the 25,000 decrease forecast in a Reuters poll. The number claiming benefits in the three months to December was also revised down.
The number of people in employment hit a new record of just under 30.2 million, helped by a rise in self-employment.
The BoE last month revised its forward guidance policy, which linked interest rate decisions to the unemployment rate, after the rate fell surprisingly quickly towards the 7 per cent threshold it had set as a level for considering interest rate hikes.
The Bank is now pointing to a broader range of measures of slack in the economy which will shape its thinking on when the economy is strong enough to cope with higher interest rates.
It has hinted that a first rate hike could come in the second quarter of 2015.
Wednesday's numbers underpin the view that the labour market is recovering at a rapid speed.
Despite the recovery, wages have continued to lag inflation making living standards a key battleground for next year's elections.
But there are incipient signs that wages are picking up, even though growth remains below the annual inflation rate of 1.9 per cent.
Average weekly earnings growth rose by a slightly higher than expected 1.4 per cent in the three months to January compared with the same period in 2013, the ONS said.
That was the biggest increase since mid-2013.