UK Unemployment Fell to 11 Year Low

Britain’s unemployment rate fell in the first three months after the Brexit vote to its lowest level in 11 years but there were some signs that a slowdown in the labour market could be coming.

The unemployment rate edged down to 4.8 percent in the July-September period, compared with a median forecast of 4.9 percent in a Reuters poll of economists.

But the number of people in work rose by 49,000, the slowest increase since the three months to March this year, the Office for National Statistics said.

Britain’s economy weathered the initial shock of the Brexit vote in better shape than the Bank of England and almost all private economists expected.

However, unemployment is widely expected to rise as companies wait for more clarity on the country’s future ties to the European Union, which could take years to emerge.

The BoE expects the unemployment rate to stand at 5.6 percent in two years’ time and a survey of employers published on Monday by the Chartered Institute of Personnel and Development (CIPD) showed companies cutting back on hiring plans in late 2016.

The number of people claiming unemployment benefits in October rose by 9,800, the biggest rise since May, the ONS said, adding its measure of claimants had been revised up to take into account changes to the benefit system.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza