U.K. Jobless Claims Rises the Least Since April 2008, Claimant Count Rate Hits 8-Year High

Claims for unemployment benefits in the U.K. increased 12.9K in October to mark the smallest rise since April 2008, while the claimant count rate rose to eight-year high of 5.1% from 5.0% in September, and the data reinforces an enhanced outlook for the economy as the labor market deteriorates at a slower pace. Economists polled by Bloomberg News forecasted jobless claims to rise 20,000 in October from the revised 20,600 in September, while the claimant count rate rose in-line with expectations. At the same time, the International Labour Organization’s rate of unemployment increased to an annualized rate of 7.8% in September amid expectations of 8.0%. Looking ahead, as the unemployment rate looks to extend further subsequent to the economy returning to growth, strength of the recovery is in question as policy makers anticipate job losses to push higher in the following year even as the nation emerges from the worst recession since the post-war period.