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- UK unemployment is at the lowest level since 2008
UK unemployment is at the lowest level since 2008
The Office for National Statistics in the UK released the labour market data. The unemployment rate in the UK decreased to 6.5% in the three months to May, from 6.6% in the previous three months. That was the lowest level since October to December 2008.
Analysts had expected the unemployment rate to remain unchanged at 6.5%.
The number of people claiming unemployment benefit dropped by 36,300 in June, exceeding expectations for a decline by 27,100, after, after a fall by 27,400 in May.
These strong figures could mean that the Bank of England will hike its interest rate sooner than expected, perhaps before the end of the year.
But there is a problem. The growth in real wages remains weak. Average weekly earnings, excluding bonuses, increased by an annual 0.7% in the three months to May, after a 0.9% rise in the previous three months. That was the slowest growth since records began in 2001. Inflation over the same period was 1.6%.
Average weekly earnings, including bonuses, rose by an annual 0.3% in the three months to May, after a revised 0.8% rise in the previous three months.
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