The UK unemployment rate fell to 4.9% in the three months to April, down from 5% in the three months to March, the Office for National Statistics (ONS) reported. At the same time, average wages including bonuses rose from 4.1% to 4.4% — stronger than economists had forecast.
The data increases pressure on the Bank of England to raise interest rates. Andrew Bailey had previously cited strong public-sector wage growth as a concern for the monetary policy committee. The central bank is expected to hold its key rate at 3.75% on Thursday.
Annual wage growth in the public sector stood at 4.8%, compared with 3% in the private sector. Employers hired fewer permanent full-time staff amid the Iran war, as the conflict weighed on business and consumer sentiment. Recently, fears have grown that companies could cut jobs due to rising costs from the war.
Source: www.theguardian.com
