UK Unemployment Rate Stays At 42-Year Low

UK job market absorbed more slack in the three months through August, according to the Office for National Statistics.

The unemployment rate stood at 4.3 percent during the period under review, below the 4.5 percent regarded by the Bank of England as the equilibrium rate.

The total number of people actively looking for work fell 52,000 to 1.44 million in the last period, while the number of those that were gainfully employed surged by 94,000 to 32.1 million. At 75.1 percent, the jobless rate is slightly below the record 75.3 percent recorded in May to July.

Also, while wage growth climbed slightly higher than expected, rising by 2.2 percent from 2.1 percent previously recorded. It remains below the rate of inflation that grew by 3 percent amid rising input costs and plunging new business investment.

Experts believe the Bank of England will raise interest rates in November to curb rising prices and reduce losses from companies.

Mark Carney, the Bank of England Governor said on Tuesday that the slack in the economy is the main concern ahead of November 2 rate decision.

The construction sector contracted to the lowest in 13 years in September while input costs rose to a 7-month high with investment in the sector declining. Weak Pound has failed to stimulate the economy as projected by most experts after the June 2016 referendum, rather it has worsened input cost and slow economic growth to 0.3 percent in the second quarter.

The pound fell against the U.S dollar to $1.3164 on Wednesday. However, the embattled currency could rebound ahead of rates hike in coming days.