Pound Sterling (GBP) Exchange Rate mixed as unemployment data comes in below expectations

The Pound eased slightly against several peers and was mixed against others on Wednesday after a report showed that the UK’s unemployment rate ticked upwards to 7.2% in the fourth quarter of last year but the number of people claiming unemployment benefit dropped.

According to the Office for National Statistics the jobless rate unexpectedly rose to 7.2% in the last three months of 2013, marking the first rise since February last year and was up from the 7.1% recorded in the third quarter. Despite the rise in the overall rate, the number of people out of work fell by 125,000 to take the total number of those unemployed to 2.34 million.

The number of people claiming jobless benefit declined by 27,600, more than economists expected. The data also showed that youth unemployment edged lower and that the number of women in work hit a record high.

“With employment continuing to increase, it’s clear that the government’s long-term plan to build a stronger, more secure economy is helping businesses create jobs and get people into work. Record numbers of women are in work and youth unemployment continues to fall, which means more people have the security of a regular wage and can plan for their future,” said employment minister Esther Mcvey.

The data was widely positive as it also showed that average weekly wages increased by 1.1% in the three-months to December 2013 compared with the previous year.

Compared to the Eurozone which has an unemployment rate of 12% the UK is doing well and its economic recovery is maintaining momentum.

The Bank of England is now more likely to maintain interest rates at the record low level of 0.5% as today’s figures add to yesterday’s data which showed that inflation fell below the Central Bank’s target of 2%.