UK unemployment falls, bolstering pound

<p>UK unemployment has fallen in the biggest quarterly joblessness slide since 2001.</p>

UK unemployment has fallen again, with this news serving to bolster the pound in forex trading this morning (December 12th).

According to the Office for National Statistics, the number of people looking for work between August and October 2012 fell by 82,000 to 2.5 million, which is the biggest quarterly slide in joblessness since 2001.

The unemployment rate was 7.8 per cent – which is a drop of 0.2 percentage points from the previous three-month period.

Total pay also rose by 1.8 per cent year on year, while employment rose by 40,000 to 29.6 million – which is the highest figure since records began back in 1971.

Speaking to BBC News, minister for work and pensions Mark Hoban remarked: "We see more people looking for work and actually finding work, so I think there's a really strong labour market there."

At 11:40 GMT, the pound advanced by 0.1 per cent in trading with the dollar to £1 buying $1.614, while it made marginal gains against the euro to €1.239.

Find out about the pound and forex trading strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.