Global| Oct 15 2003UK Unemployment Rate Lowest of Major Economies
Summary
Labor market conditions showed some relative improvement in the UK in the three months centered on July. The unemployment rate held at 5.0%, the same as in the three months centered on April (the customary style of the UK Statistics [...]
Labor market conditions showed some relative improvement in the UK in the three months centered on July. The unemployment rate held at 5.0%, the same as in the three months centered on April (the customary style of the UK Statistics Office monthly reports on the labor force) and down from 5.1% in the June period. Employment did edge down 25,000 from June, but that latter figure, 27.929 million, was the all- time highest number of people with jobs. Other data hint that employment should remain firm. The number of claims for the "Jobseeker's Allowance", the so-called claimant count, fell 1,900 in the September period, extending its decline into a fourth month. Workers' earnings rose 3.4% in the June-August quarter, encompassing a 2.9% rise in private sector earnings and 6.1% in the public sector. The total was 0.1% more than in the three months ended July and suggests a firming after some weakness during the spring. Both private and public sector wages are holding up, although most comes from that sizable increase in the public sector.
Historically, the UK was not particularly known for economic strength, but its current unemployment rate shows that it presently has the most favorable labor market conditions of any of the major economies. The 5.0% unemployment rate for the three months ended August compares with 5.2% in Japan, 6.2% in the US and 9.4% in Germany. The chart above indicates that unemployment in the UK has been less than that in Germany since the beginning of 1996.
| UK: Selected Labor Market Indicators | "Aug" (3 mos ended Sept) |
"Jul" (3 mos ended Aug) |
"Jun" (3 mos ended July) |
Year Ago | 2002 | 2001 | 2000 |
|---|---|---|---|---|---|---|---|
| Unemployment Rate (%) | N.A. | 5.0 | 5.1 | 5.2 | 5.2 | 5.1 | 5.4 |
| Claimant Count (thous.) | 933.1 | 939.1 | 945.3 | 945.3 | 946.8 | 970.1 | 1,088.4 |
| Labor Force Employment (thous.) | N.A. | 27,918 | 27,921 | 27,674 | 27,690 | 27,499 | 27,300 |
| Average Earnings Index: "Headline Rate" (% Change) |
N.A. | 3.4 | 3.3 | 3.7 | 3.5 | 4.6 | 4.6 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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