Further large falls in the U.K claimant count

Societe Generale notes as follows on Monday:

• The U.K unemployment rate continues to fall apace, now standing at 5.7%. 
  
  
• It should stay there in this month's release but the claimant count rate should fall from 2.5% to 2.4%. 
  
  
• Indeed, the monthly fall in the claimant count appears to have reaccelerated to a trend of around 35k and could even hit 40k in February. 
  
  
• We are being slightly conservative in predicting 35k. The rate of earnings growth should continue to rise - from 1.7% to 1.8% 3mth yoy for regularpay and from 2.1% to 2.2% for total pay including bonuses.