UK Jobless Rate Down in Jan

NOV-JAN LFS JOBLESS RATE 5.0% VS 5.1%

NOV-JAN AVG TOTAL EARNINGS +4.8% VS +4.7% PRIOR

NOV-JAN AVG EARNINGS EX-BONUS +4.2% VS +4.1% PRIOR

FEB CLAIMANT COUNT DOWN 86,600 to 2,682,800

The UK's jobless rate edged slightly lower in Jan, falling to 5.0% from Dec's 5.1%, coming in below expectations of a rise to 5.2%. The employment rate ticked down to 75.0%, while the inactivity rate was 21.0% in Jan. More up-to-date PAYE data showed a 68,000 increase in payrolled employees in Feb compared to Jan, marking a third successive gain. Since Feb 2020 there are 693,000 fewer people in payrolled employment in Feb 2021 and the ONS noted around two-thirds of this decline have been those under under 25, while 328,000 of the decrease was recorded in the hospitality sector. The redundancy rate stood at 11.0 people per 1000 employees in Jan. Vacancy growth slowed in recent months - there were 601,000 vacancies in the three month to Feb, which is 220,000 fewer than a year ago. Actual weekly hours worked eased slightly in Jan to 29.9, following six consecutive months of growth. Total and regular pay both accelerated in Jan to 4.8% and 4.2%, respectively, albeit skewed by composition effects.