- Andrzej Szczepaniak, Barclays
The number of unemployment benefit claims in Britain rose less than expected last month, while the unemployment rate held steady. Official data published by Office for National Statistics on Wednesday showed claims for unemployment aid advanced 2,400 in November, while markets anticipated a gain of 6,200. The October figure was revised up to 13,300, the highest since February 2015, from the originally reported 9,800. In the meantime, the unemployment rate remained unchanged at its 11-year low of 4.8% as fewer teenagers and homemakers entered the labor market. That was in line with analysts' expectations. Nevertheless, the number of employed people dropped 6,000 to 31.8 million after hitting its record high in October. That marked the first fall since the three months to June 2015. The ONS also reported the Average Earnings Index jumped 2.5% year-over-year in the August-October period. Excluding bonuses, earnings increased 2.6%, the largest gain since mid-2015.
The UK economy performed far better than expected after the country's decision to leave the European Union; however, analysts still expect the economy to slow down sharply next year.
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