UK claimant count registered a surprise drop in July, wages tick higher

Data released by the Office for National Statistics (ONS) on Wednesday showed the UK’s official jobless rate remained unchanged at eight-year lows of 4.9 percent in July, while the claimant count surprised markets on the downside.

UK rate of unemployment was in line with forecasts, but claimant count unexpectedly fell by a seasonally adjusted 8,600 in July, compared to expectations for an increase of 9,500 people, and following an advance of 900 a month earlier, whose figure was revised from a previously reported gain of 400. The claimant count rate stayed at 2.2 percent, same as that seen in May.

The unexpected dip in claimant count in July showed that UK job market has not been dented in the immediate aftermath of Brexit. The unemployment data follows hot on the heels of Tuesday’s inflation update when the consumer prices index (CPI) rose to a higher-than-expected 0.6 percent in July.

Wage growth, excluding bonuses matched expectations, coming in at 2.3 percent in June compared to 2.2 percent in the previous month. The average earnings index, including bonuses, rose by a seasonally adjusted 2.4 percent in the three months to June, in line with forecasts and higher than 2.3 percent in the last month.