London pre-open: Stocks to edge up as investors mull jobs data

The FTSE 100 was called to open eight points higher at 7,076.

Figures released earlier by the Office for National Statistics showed that worker numbers bounced back in August to pre-pandemic levels, while the unemployment rate fell in July.

The number of workers on payrolls rose by 241,000 from August to 29.1m, while the unemployment rate fell to 4.6% in July from 4.7% the month before, in line with analysts’ expectations.

ONS deputy national statistician Jonathan Athow said: "Early estimates from payroll data suggest that in August the total number of employees is around the same level as before the pandemic, though our surveys show well over a million are still on furlough.

"However, this recovery isn’t even: in hard-hit areas such as London and sectors such as hospitality and arts and leisure, the numbers of workers remain well down on pre-pandemic levels.

"The overall employment rate continues to recover, particularly among groups such as young workers who were hard hit at the outset of the pandemic, while unemployment has fallen.

"Vacancies reached a new record high.

"Not surprisingly, this is driven above all by hospitality, the sector with the highest proportion of employers reporting their job openings are hard to fill."

In corporate news, JD Sports Fashion reported record first-half results boosted by pent-up demand after UK stores reopened from lockdown and acquisitions in the US.

Pre-tax profit before exceptional items jumped to £439.5m in the six months to the end of July from £61.9m a year earlier as revenue rose to £3.89bn from £2.54bn. JD said it expected annual headline pre-tax profit for the full year to be at least £750m.

The FTSE 100 company declared no interim dividend but said the final dividend could be larger depending on potential trading restrictions.

Ocado Retail posted a 10.6% year-on-year drop in sales for its third quarter. The company blamed the fire at its Erith Customer Fulfilment Centre for the bulk of the drop.

Management said that prior towards the conflagration, which occurred towards the middle of the quarter, its sales had been tracking in line with expectations, slipping by 1.8% over the first six weeks of the quarter. Sales had surged by 54% during the same period one year before.