U.K. claimant count surprises on the downside in March, wages pick-up

U.K.’s claimant count surprised markets to the downside, the Office for National Statistics noted on Wednesday. The number of people claiming jobless benefits increased sharply by 25.5k in March, against expectations of a -3k decrease and -6.1k (revised up) seen previously. The claimant count rate ticked higher to 2.2 percent versus 2.1 percent last.

The UK unemployment rate remained unchanged at the lowest level seen since 1975, data from the Office for National Statistics showed. The ILO jobless rate held steady at 4.7 percent in three months to February, in line with expectations. The employment rate was 74.6 percent in three months to February, which was the joint highest since comparable records began in 1971.

That said, wages showed a pick-up during the month. Wage growth, excluding bonuses came in at 2.2 percent versus 2.4 percent (revised higher) booked previously, while the gauge including bonuses ticked higher, arriving at 2.3 percent 3m y/y versus 2.2 percent last.

"Today’s UK labour market figures for the three months to February showed that the labour market remains tight. However, a sharper-than-expected slowdown in employment growth is yet another hint that economic activity may be decelerating. That, along with continued subdued wage growth provides support for leaving UK interest rates at their current very low level," said Lloyds Bank in a report.