Pound jumps after surprise fall in UK unemployment rate, but vacancies dry up amid ‘jobs drought’ – business live

Rolling coverage of the latest economic and financial news The pound has rallied after Britain’s unemployment rate fell unexpectedly this morning to 4.7%. Sterling has gained half a cent against the US dollar to $1.3352, as the City welcomes the news that employment rose in the l

Rolling coverage of the latest economic and financial news The pound has rallied after Britain’s unemployment rate fell unexpectedly this morning to 4.7%. Sterling has gained half a cent against the US dollar to $1.3352, as the City welcomes the news that employment rose in the last quarter. “This data has caught the market on the hop, with traders scrambling to respond and boost exposure to the pound.

Good news has been a touch more prevalent for the UK of late, which is just the kind of framing the government needs heading into the budget, though signs of more resilience in the labour market do of course mean the BoE has more room to respond to higher inflation.” “The labour market remains relatively flat overall. This resilience in the face of headwinds driven by global events is welcome. But underlying problems remain, with around one million young people not in education, employment or training and overall employment more than two million short of the Government’s 80% employment rate target.

To fix those challenges we need to change the benefit system so it offers active help to all who need it, but also make it easier for employers to create jobs. “ Continue reading...