UK Jobless Rate Edges Higher in July

MAY-JUL LFS JOBLESS RATE 4.1% VS 3.9%

APR-JUNMAY-JUL AVG TOTAL EARNINGS –1.0% VS -1.2% PRIOR

MAY-JUL AVG EARNINGS EX-BONUS 0.2% VS -0.2% PRIOR

AUG CLAIMANT COUNT up 73,700 to 2,737,900

The UK's jobless rate ticked up to 4.1% in the three month to Jul, in line with expectations and after hitting 3.9% for several months. The employment rate edged higher to 76.5%, up 0.1% on the quarter, while the inactivity rate decreased to 20.2%, hitting a record low.More up-to-date PAYE data showed another decline in payrolled employment of 36,000 in Aug compared to Jul, leading to 695,000 jobs lost since Mar. Hours worked remained subdued in Jul, however avg weekly hours worked rose to 26.3 in Jul showing some signs of recovery.The number of people away from work decreased, however more than 5mn are still temporarily away from work (incl. furloughed workers). Vacancies recovered further in Jul and are around 30% higher than in Jun-Aug at 434,000 which was mainly driven by smaller businesses. The claimant count rate ticked up to 7.6% in Aug, up from 7.4% in July and showing the highest level since May 1995.