U.K. Jobless Claims Rises for Eight Consecutive Months, Adding to Growth Fears

Daily Forex Fundamentals | Written by DailyFX | Oct 15 08 09:26 GMT |

U.K. claimant count rate rose to 2.9% in September from 2.8%, in line with expectations and reaching the highest reading since January last year. Meanwhile, claimant count change on the month was 31.8k, slightly better than our survey median for 35.6k and versus 35.7k in August (revised from 32.5k previously). The 3m average ILO unemployment rate surged to 5.7% from 5.2% , hitting its highest reading since March 2000 and recording its largest jump since July 1991. Data hence highlights the rapidly deteriorating state of the U.K. labour market. August earnings data showed a slowdown in wage growth, with the headline 3m y/y rate slowing to 3.4% (median 3.5%) from 3.5% in July, while the measure excluding bonuses slowed to 3.6% (median same) from 3.7%. Meanwhile, U.K. Prime Minister Brown said the government will do everything it can to create jobs in the U.K. economy. Speaking from the EU leaders summit in Brussels, the comments were delivered as fresh labour market data showed the ILO unemployment rate reach its highest level in in over 8 years in August and the claimant count increase showed another net increase of more than 30k in September. These figures are backward looking, however, and we are likely to see a further deterioration of the labour market situation as the fall-out from the past few week's credit crisis intensification will be visible, as well as when school-leavers hit the unemployment registers. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.