Britain’s unemployment rate fell below forecasts, signaling potential labor market tightness ahead of the Bank of England’s next policy decision.
The UK’s ILO unemployment rate declined to 4.9% in the three months through April, down from 5.0% in the prior period. The figure came in below the 5.0% consensus forecast, according to official data released Thursday.
The drop marks the lowest unemployment rate since mid-2023, reflecting a gradual improvement in labor market conditions. Analysts had anticipated a steady reading, making the decline a modest surprise for markets.
The data may reinforce expectations of persistent wage growth, adding pressure on the Bank of England as it weighs interest rate cuts later this year.