FxWirePro: UK unemployment rate drops for the seventh straight month amid record hiring spree in August

EUR/GBP chart - Trading View 

According to data released by the Office of National Statistics, UK unemployment rate fell 0.3 percent in the last quarter as businesses continued on a hiring spree.

UK the unemployment rate now stands at 4.6 percent, in line with forecasts, after a record 241,000 employees were added to payrolls last month.

Average Earnings excluding bonuses beat estimates with an increase of 8.3% YoY. Jobless claims fell by 58,600 in August, below expectations.

The unemployment rate has fallen for 7 months in a row and the number of employees on payrolls is back above pre-pandemic levels.

UK employment figures are likely to support the BOE hawks. GBP/USD posts minor gains after UK jobs data. 

Traders will however remain wary ahead of the crucial US CPI data for a clearer view before pushing the pair higher in reaction to the British jobs data.

Chancellor of the Exchequer, Rishi Sunak said: “Today’s statistics show that our Plan for Jobs is working. As we continue to recover from the pandemic, our focus remains on creating opportunities and supporting people’s jobs.”

Market Reaction:

GBP/USD trades 0.09% higher on the day at 1.3850 at 06:45 GMT

EUR/GBP largely unchanged at 0.8529 at the time of writing.