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8:01 AM Β· 17 February 2026

BREAKING: Pound dips on higher unemployment in the UK πŸ‡¬πŸ‡§ πŸ“ˆ

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07:00 GMT, United Kingdom – labour market data for December:

  • Unemployment rate: actual 5.2%, forecast 5.2%, previous 5.1%

  • Average Earnings Index: actual 4.2%, forecast 4.2%, previous 4.5%

  • Average Earnings Index + Bonus: actual 4.2%, forecast 4.6%, previous 4.6%

  • Employment change 3M/3M: actual 52K, previous 82K

 

The UK labor market continues to soften, with the unemployment rate climbing to 5.2% and payrolled employees dropping by 134,000 year-on-year in January 2026 (early estimates). While the employment rate dipped to 75.0%, vacancies remained stagnant at 726,000.

Cooling wage pressures are evident as annual earnings growth hit 4.2%, leaving real-term gains at a modest 0.5%. Despite public sector pay resilience, the broader decline in payrolls and rising claimant counts (1.691m) signal a weakening trend. 

This fundamental cooling fueled the GBPUSD dip below the key support level of 1.36000 as markets price in a more cautious economic outlook and potentially more easing from Bank of England.

 

Source: xStation5

 

 

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