The UK job market adds 160,000 jobs in October, increasing the chances that the Bank of England will raise interest rates

City of London UK commutes economy employment
The UK labor market strengthened in September and October.

  • The number of employees on UK companies’ payrolls rose by 160,000 to 29.3 million in October, data showed on Tuesday.
  • Separate official data released on Tuesday showed that unemployment fell to 4.3% in the three months to September.
  • The figures potentially eased the Bank of England’s persistent concerns about the risk of raising interest rates.

British employers added more workers to their payrolls in October after the government’s job protection leave scheme ended, potentially easing the Bank of England’s persistent concerns about the risk of raising interest rates.

Sterling rose as data showed the number of employees on the company’s payrolls rose by 160,000 to 29.3 million employees last month, and unemployment in the third quarter fell by more than expected.

The Bank of England, which is considering when to raise interest rates, is keeping a close eye on how the labor market is doing after the scheme expires, with an estimated 1.1 million people still on it in recent days.

The Office for National Statistics said it was possible that people who were fired at the end of the leave scheme would continue to appear as in work in the data for some additional months while they worked out their notice period.

“But responses to our business survey suggest that the number of redundant is likely to be a small percentage of those still on leave by the end of September 2021,” ONS said.

Separate official data released on Tuesday showed that unemployment fell to 4.3% in the three months to September.

Economists polled by Reuters had expected unemployment to fall to 4.4% from 4.5% in the three months to August.

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