UK economy withstands end of jobs support, easing Bank of England worries

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Britain's unemployment rate falls by more than expected to 4.3% in the third quarter of 2021.

Sterling strengthened as the number of staff on businesses' payrolls in October rose to 0.8% above levels in February 2020, before the coronavirus pandemic hit, and increased by 160,000 on the month.

The Office for National Statistics said it was possible that people made redundant at the end of the furlough scheme would continue to appear as in work in the data for a few further months, while they worked out their notice period. The ONS said average weekly earnings in the July-September period were 5.8% higher than in the same three months of 2020, the smallest annual increase since April.

BoE Governor Andrew Bailey has said Tuesday's jobs data and another release due in four weeks' time will be critical for the central bank's thinking about whether to raise the Bank Rate for the first time since the pandemic struck.

Source: Financial Digest (financialdigest.net)

 

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