UK Unemployment Rate

Average weekly earnings, excluding bonuses, were 5.4 per cent higher than a year earlier in the three months to the end of June, down from 5.8 per cent in the three months to May

Official figures show that Britain's unemployment rate has fallen unexpectedly as the number of people in work hit a record high and rose past its pre-pandemic level for the first time. The Office for National Statistics said Tuesday that the jobless rate fell to 3.8% in the three months to April, from 3.9% in the previous quarter. Most economists were expecting the rate to edge up to 4%. As the unemployment rate fell, the agency said, the country's employment rate rose to 76% from 75.9%, with the number of people in work at an all-time high of 33.1 million. Darren Morgan, director of economic statistics at the agency, said the biggest driver in recent jobs growth is health and social care, followed by hospitality. The agency also found that wages rose sharply, a development that may cause concern at the Bank of England, which is widely expected to raise interest rates once again next week.

However, the fall was not a sign of health in Britain's economy which is at risk of a recession

The unemployment rate increased to 4.8% in the period, up 0.3 percentage points from last month

BoE says downturn less severe than feared, avoids 'last resort' negative rates

However he sounded a note of caution about the impact of Brexit and the slowing global economy

The rapid job creation took the unemployment rate down to 4.3% from 4.4%

Analysts said the tepid economy could yet take a toll on jobs

Reports to complicate the debate among BoE officials over the need for higher interest rates