UK unemployment rate ticks higher

(Sharecast News) - The UK unemployment rate ticked higher in October, official data showed on Tuesday, in line with expectations. According to the Office for National Statistics, the estimated UK unemployment rate rose 0.4 percentage points to 5.1%.

The inactivity rate dipped 0.1 percentage points to 21%. Wages also continued to grow. Including bonuses, total earnings rose 4.7%, while regular earnings - which exclude bonuses - rose 4.6%.

Both were above consensus, for growth of 4.4% and 4.5%, but down on September's upwardly-revised growth of 4.9% and 4.7% respectively.

The biggest hike in wages was seen in the public sector, where average regular earnings growth was 7.6%, compared to 3.9% in the private sector.

Liz McKeown, director of economic statistics at the ONS, said: "The overall picture continues to be a weakening labour market.

"The number of employees on payroll has fallen again, reflecting subdued hiring activity, while firms told us there were fewer jobs in the latest period."

Estimates for payrolled employees fell by 149,000 year-on-year, and by 22,000 between September and October.

In August to October - the period comparable with the ONS's Labour Force Survey - the number of payrolled staff fell by 113,000 over the year. Vacancies remained broadly flat.

McKeown added: "The fall in payroll numbers and increase in unemployment has been seen particularly among some younger age groups."