UK unemployment rate steady at 5.1% as expected

The unemployment rate in the UK was steady at 5.1% in January, in line with economists’ expectations, according to data from the Office for National Statistics.

Unemployment fell to 1.68m between November and January, which was 28,000 fewer than the previous quarter and down 171,000 from the same period a year earlier.

The ONS said there were 31.42m million in work, up 478,000 from a year ago.

There were 22.94m people in full-time work, 302,000 more than a year earlier, and 8.48m working part-time, which was up 177,000 on the previous year.

Meanwhile, the employment rate stood at 74.1%, the joint highest since current records began in 1971.

Average weekly earnings rose 2.1% including bonuses between November and January compared with the same period a year earlier. Excluding bonuses, earnings were up 2.2%, also in line with expectations.

ONS statistician Nick Palme said: “Once again the latest quarterly figures show continuing high employment levels but no significant pick-up in earnings growth.”

Chris Williamson, chief economist at Markit, said: “The start of 2016 saw unemployment fall and employment hit an all-time high, according to official data, while pay growth also showed signs of picking up.

“However, the rate of pay growth remains disappointingly weak, especially given the low level of unemployment in the economy. More up to date survey data also show the labour market losing some of its fizz in February, and households have meanwhile grown increasingly worried about falling incomes and job security in March, suggesting the outlook has darkened in recent months.”