UK Jobless Rate Ticked Down in Feb

DEC-FEB LFS JOBLESS RATE 4.9% VS 5.0%

DEC-FEB AVG TOTAL EARNINGS +4.5% VS +4.8% PRIOR

DEC-FEB AVG EARNINGS EX-BONUS +4.4% VS +4.3% PRIOR

MAR CLAIMANT COUNT UP 10,100 to 2,673,700

• The UK's jobless rate ticked down in Feb, falling 0.1pp to 4.9% from Jan's 5.0%, coming in below expectations (BBG: 5.1%).
• While the employment rate eased 0.1pp to 75.1% in Feb, the inactivity rate ticked up 0.2pp to 20.9%.
• More up-to-date PAYE data showed a 56,000 decrease in payrolled employees in Mar compared to Feb, showing the first decline since Nov 2020. Compared to Mar 2020 there are 813,000 fewer people (-2.8%) in payrolled employment and 53.7% of these were younger than 25.
• The ONS noted that there are around 5 million people employed but still on furlough.
• Actual hours worked edged down to 29.6, following Jan's small dip as the lockdown weighs on the labour market.
• There were 607,000 vacancies in the three months to Mar, which is 22.7% fewer than a year ago. Nevertheless, vacancies rose compared to the last quarter, especially in the hospitality sector due to reopening prospects.