UK Unemployment Falls, Wages Grow Faster Than Expected

UK unemployment fell to 4.3% in the three months to April, down from 4.4% in the previous period, according to the Office for National Statistics (ONS). This marks a decrease of 24,000 people unemployed, bringing the total to 1.4 million. The ONS also reported that average weekly earnings, excluding bonuses, grew by 6.0% year-on-year in the same three-month period, exceeding economists' expectations of 5.5%. Including bonuses, average earnings rose by 5.9%, a slight decrease from the 6.1% recorded in the previous period. The number of job vacancies also saw a decline, falling by 13,000 to 881,000 in the three months to May, indicating a cooling labor market. Despite the fall in vacancies, the persistent wage growth presents a complex picture for the Bank of England as it considers future interest rate decisions. The ONS noted that the unemployment rate for men was 4.5% and for women was 4.1% in the three months to April. The economic inactivity rate stood at 22.3% in the same period, showing no change from the previous quarter.