UK Unemployment Rate Falls to 3.8%
Unexpected Improvement
The UK unemployment rate unexpectedly fell to 3.8% in the three months ended April from 3.9% in the first 3 months of this year.
Wage Increase
The data showed that UK employers increased wages by an average of 5.6% in the three months to April, reflecting rising consumer price inflation and a sharp rise in the minimum wage.
Record High Pay Increase
This increase is the highest since data collection began in 2005 and is higher than the 5 percent pay increase in the three months to the end of March.
The UK unemployment rate has unexpectedly dropped to 3.8% in the three months ending April, a slight decline from 3.9% in the first quarter of the year. The rate, which is the lowest since 1974, indicates the country’s strong job market despite the uncertainty surrounding Brexit.
More good news comes with the data revealing that UK employers have increased wages by an average of 5.6% in the same period, the highest since data collection began in 2005. This increase reflects the rise in consumer price inflation and a sharp increase in the minimum wage.
The reduction in unemployment and the increase in wages suggest that the UK economy is performing well despite the ongoing Brexit negotiations. However, economists warn that the country’s economic prospects could be threatened if the UK leaves the European Union without a deal.
