UK jobless numbers up more than expected

The number of Britons seeking jobless benefits rose by more than double the amount expected in October while annual pay growth in the three months to September eased, official data showed on Wednesday.

The Office for National Statistics said claimant count unemployment rose 12,100 in October, the ninth consecutive increase and the biggest rise since May.

That compared with a rise of 10,700 in September and analysts' expectations for an increase of 5,000 and left the claimant count jobless rate at 2.8 per cent.

Separately the ONS said that average annual earnings growth eased to 4.1 per cent in the three months to September from 4.2 per cent in the previous period. Economists had expected no change in the rate.

The figures, which suggest that higher inflation in recent months have not fed into wage growth, are likely to support expectations that the Bank of England may trim interest rates further from 4.5 per cent next year.

Indeed, average annual pay growth excluding bonus effects held steady at 4.0 per cent in the three months to September.

But the ONS also said that LFS (Labour Force Survey) employment rose 123,000 in the three months to September, the biggest such rise since the period between last December and February this year. The ILO jobless rate held at 4.7 per cent, as expected.

The ONS said the trend on the claimant count is upwards.

- REUTERS