Claimant count falls in March by 32,900

Date: April 21, 2010

• Gordon Brown will welcome the news going into tomorrow’s election debate
• Growing trend that unemployment is under control
• Good news for the deficit

Sterling continued its climb this morning after official data released showed the number of Britons claiming unemployment benefits fell again in March by 32,900 to 1.54 million. Sterling rose against the dollar from $1.5397 before the data to $1.5416 after the announcement.

The jobless rate was up from 7.8 pc to 8% and average earnings figures were not as strong as expected at 2.3%, but up from the previous month (0.8%.)

Mark Bolsom, Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX Payments Specialist, says, “Gordon Brown will welcome this news heading into tomorrow’s election debate. There appears to be a growing trend that unemployment is under control and Labour is sure to claim it as a sign of good management of the economy.”

Bolsom also welcomed the news that Britain’s unemployment rate of 8% was below that of the US (9.7%) and the Eurozone (10%).

“Not only are we paying out less in unemployment benefits compared to our US and EU counterparts, but we are also getting more tax revenues through which will be good news in terms of reducing our deficit, although it will take a lot more than this alone to reduce it substantially.”

Bank of England votes 9-0 to leave rates and QE on hold

• Bank also concerned there is a lack of credit for businesses
• Depreciation of the pound not helping as it should be

The Bank of England minutes showed the vote taken to maintain rates and leave quantitative easing unchanged was unanimous at 9 - 0. The committee agreed that the past month’s data has not altered their growth and inflation outlooks, but acknowledged that higher oil and commodity prices will raise inflation in the short-term.

Bolsom notes, “The Bank showed concern that the depreciation of the pound isn’t helping to boost exports and that a lack of credit continues to hamper private business investment.

“The minutes really highlight the difference between the headline economic data published by statisticians and the tangible experiences of businesses on the front line, as the Bank clearly feels they are not prospering as well as they should be.

“The sharp rise in inflation and drop in the claimant count rate also pushes back the likelihood of an extension to quantitative easing.”

- Ends -

Media enquiries
Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

Notes to editors
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About Travelex:
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at jessica.buttress@travelex.com