FTSE 100 Live: Unemployment in focus

The unemployment rate in the UK remained unchanged at 4.70 per cent in July.

Average earnings including bonuses rose 4.7 per cent, also above consensus and ahead of the last print of 4.6 per cent.

However, estimates for payrolled employees in the UK fell by 142,000 (0.5 per cent) between July 2024 and July 2025, and by 6,000 (0.0 per cent) between June 2025 and July 2025, according to the ONS.

The early estimate of payrolled employees for August 2025 decreased by 127,000 (0.4 per cent) on the year, and by 8,000 (0.0 per cent) on the month, to 30.3m.

These figures come ahead of the decisions made by the Monetary Policy Committee (MPC) members on Thursday.

The Bank is widely expected to hold interest rates at four per cent.

Governor Andrew Bailey has been outspoken about his fears that rising unemployment levels could weigh down on price growth more heavily in the medium term. 

City AM’s Shadow MPC, which comprises nine economists from academia and the City, highlighted the risks lower wage growth and a reduction in the number of patrolled employees could have on the UK economy.  

But it voted 8-1 in a vote for interest rates to be held, with Vicky Pryce being the only member to call for a rate cut. 

Meanwhile, the FTSE 100 fell 0.2 per cent on opening, with EasyJet and Haleon among the biggest fallers.

Tesco also dropped by one per cent while Rentokil fell by slightly more. The price of gold hit a new record high on Monday along with S&P 500 and Nasdaq.

Tomorrow morning, another key data release will come as the ONS publishes fresh inflation figures for August.