The unemployment rate remained at its lowest level in 40 years, in the fourth quarter of 2019, despite the political uncertainty that faded in the country due to Britain’s exit from the European Union.
The UK unemployment rate stabilized at 3.8% in the fourth quarter of last year, compared to the previous quarter, which represents the lowest value in the past four decades, the government announced. Qatar Statistical InstituteToday, Tuesday, February 18th.
Between October and December, the UK economy was able to create another 180,000 jobs, higher than the 145,000 jobs expected by Reuters, despite the uncertainty the country was witnessing due to Britain’s exit from the European Union.
“The massive increase in jobs and the unemployment rate to below 4% is a strong argument against potential interest rate cuts from the Bank of England, especially with a fiscal boost on the way,” Bloomberg economist Dan Hanson said.
(Chart taken from Office for National Statistics)
This increase in the number of jobs coincided with the crucial period of the United Kingdom's separation from the European Union, as early elections are scheduled to be held on December 12, giving current Prime Minister Boris Johnson a majority victory in the House of Commons. His win of a majority of seats in parliament brought some calm to the markets as well as to the country's economy, which faced a possible contraction in December and grew more than expected. Now, Johnson is preparing to launch a major budget stimulus package next month.
After the employment data was released, the British pound rose by 0.23% to $1.3036.
But despite employment increasing and the unemployment rate at lower levels, wage growth slowed to 2.9% in the last three months of last year, compared to 3.7% recorded in the same period last year, which represents the biggest brake since the summer of 2018. .
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