UK unemployment rate beats forecasts, edges down to 4.9%
The UK unemployment rate fell in the three months to April, although payroll employment and vacancies continued to decline, data showed on Thursday.
According to the Office for National Statistics, the UK unemployment rate for people aged 16 and over edged down to 4.9% in the February-to-April period from 5.0% in the three months to March.
The reading beat the FXStreet-cited consensus, which had expected the unemployment rate to remain unchanged at 5.0%.
The employment rate for people aged 16 to 64 was estimated at 75.0%, largely unchanged on both the year and the previous quarter.
Meanwhile, payrolled employment continued to fall.
The number of payrolled employees declined by 103,000, or 0.3%, in the February-to-April period from a year earlier. The fall was steeper than the FXStreet-cited consensus forecast for a decline of 80,000.
On a quarterly basis, payrolled employees fell by 31,000.
The ONS said the early estimate for May showed the number of payrolled employees decreased by 119,000 on the year but was largely unchanged on the month, rising by 2,000 to 30.3 million.
The claimant count increased to an estimated 1.71 million in May, rising on both the month and year.
Labour demand continued to weaken, with vacancies falling to their lowest level in more than five years.
The estimated number of vacancies declined by 19,000, or 2.6%, to 707,000 in the March-to-May period compared with December-to-February. The ONS said this was the lowest level since February to April 2021.
Wage growth remained positive.
Annual growth in regular earnings, excluding bonuses, was 3.4% in February to April, while total earnings growth, including bonuses, was 4.4%.
Public sector regular pay growth was 5.1%, compared with 2.9% in the private sector.
After adjusting for inflation using the consumer prices index including owner occupiers’ housing costs, regular pay increased 0.1% in real terms, while total pay rose 1.2%.
The economic inactivity rate for people aged 16 to 64 was estimated at 21.0% in the February-to-April period, down 0.3 percentage points from a year earlier but up 0.3 percentage points from the previous quarter.
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