UK Jobless Rate Lowest In 42 Years

The UK unemployment rate remained at the lowest level in more than four decades during the three months to October and the annual growth in earnings accelerated but remained well below inflation.

Data from the Office for National Statistics on Thursday showed that the ILO jobless rate was 4.3 percent in the three months to October, the same rate as in the July quarter.

The rate was in line with expectations and was the lowest since March to May 1975.

The number of unemployed decreased by 26,000 from the three months to July to 1.43 million.

At the same time, the employment rate fell to 75.1 percent from 75.3 percent in the three months to July.

The number of people in work fell by 56,000 from July to 32.08 million, marking the biggest fall in more than two years.

On a yearly basis, average weekly earnings for employees increased by 2.5 percent including bonuses and by 2.3 percent excluding bonuses. But the rates are well below the inflation, at 3.1 percent in November.

The claimant count rate held steady at 2.3 percent in November. The number of people claiming jobseeker's allowances increased by 5,900 from October.

The labor market will tighten a little further ahead, while surveys of salaries suggest that the slight increase in wage growth in October is a sign of things to come, Andrew Wishart, an economist at Capital Economics, said.

The Bank of England is set to announce its interest rate decision on December 14. No change in the monetary policy stance is expected.