–Adds Detail To Version Transmitted At 0930 GMT
–Feb Claimant Count Unemployment -10,200; Rate 4.5%
–Nov-Jan ILO Unemployment +27,000 q/q; Rate 8.0%
–Jan Total Weekly Earnings +2.3% 3m y/y vs +1.8% in Dec
–Jan Regular Weekly Earnings +2.2% 3m y/y vs +2.3% in Dec

LONDON (MNI) – Claimant count unemployment posted its largest
monthly decline for eight months in February, as earnings growth rose by
more than expected, official figures released by National Statistics
Wednesday.

Claimant count resumed its downward trend in February, declining
10,200 on the month against the median forecast for no change. The rate
of unemployment remained stable at 4.5% for the eighth consecutive
month. January claimant count data was revised to show a rise of 1,500
from an initially estimated 2,400 increase.

Most economists are forecasting that unemployment is likely to rise
during 2011 as the cuts in public spending lead to job losses in the
public sector with the private sector unable to take up all the slack.
These data, however, continue to show the labour market proving far more
resilient than most had expected.

The latest fall in the claimant count was due to a 17,500 fall in
male joblessness while female claims were up 7,300. National Statistics
said that changes to eligibility of benefits to lone parents had likely
boosted claims by women.

The ‘official’ ILO measure of unemployment rose 27,000 in the three
months to January pushing the rate up to 8%, above the median forecast
of 7.9%, lifting the rate to its highest level since the first quarter
of 2010.

Employment was up 32,000 on the quarter with the employment rate
easing to 70.5% from 70.6%.

In the February Inflation Report the Bank of England said smoothing
through recent labour market data “suggests stable or gradually rising
employment during 2010 H2. And surveys of employment intentions are
broadly consistent with modest growth continuing in the near term.”

These latest employment numbers are compatible with the BOE’s view.

Further data released by National Statistics Wednesday showed that
public sector employment fell during Q4 2010 with 45,000 jobs lost
compared with Q3. This was offset by a 77,000 rise in private sector
jobs.

Higher bonuses in the financial sector pushed headline earnings
growth to 2.3% in the three months to January compared with a year
earlier, up from 1.8% in December, the highest since May 2010.

Pay in the finance and business services sector rose to 5.1% on the
same basis, the highest since April 2010.

Excluding bonus payments, however, earnings growth remained
subdued, with the headline rate easing to 2.2% from 2.3% in December.

–London bureau: 00 44 207 862 7491; email: drobinson@marketnews.com

[TOPICS: MT$$$$,M$B$$$,MABDS$]