The UK unemployment rate increased to 3.9% from June to August, new data from the Office for National Statistics revealed on Tuesday.
This was an unexpected rise as the market was expecting the rate to remain at 3.8%.
The Office for National Statistics said that in the three months to August 2019, the level of employment fell by 56,000 to 32.69 million, the first quarterly decline since the three months to October 2017.
“The fall in employment was caused by changes in the numbers of men and women,” the Office for National Statistics said.
“The number of women entering employment has been a strong contributing factor to the current high employment levels, so a fall in their number in employment has had a larger impact on the current level of employment,” the report continued.
The data also showed that average weekly earnings continued to increase. Total average weekly pay (including bonuses) grew by 3.8% in the year to August to £542.
“There’s been a little bit of softness in the most recent job data with the unemployment rate ticking higher,” David Cheetham, Market Analyst at XTB UK, commented on the figures.
“Overall there is a hint of weakness here but it should be remembered that the labour market remains strong by historical standards. In terms of market reaction there was a small dip lower in the pound but it has since shrugged of the release with the markets far more concerned with the latest Brexit developments,” David Cheetham added.
Indeed, as the Brexit deadline approaches, uncertainty over the nation’s future prevails. Elsewhere on Tuesday, news emerged from Kantar that consumers are preparing more so for Halloween than they are the Brexit deadline day, with new grocery market figures revealing a year-on-year increase in supermarket sales of 1.3%