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U.K. unemployment rate unexpectedly drops; wages rise more than expected

Investing.com -

Investing.com - The jobless rate in the U.K. unexpectedly fell from an already decade-low in April, while average earnings rose more than expected, official data showed on Wednesday.

The Office for National Statistics said that the rate of unemployment fell to 5.0% in the three months to April, beating expectations for it to remain stable at 5.1%.

The claimant count fell by a seasonally adjusted 400 in May, compared to expectations for a drop of 100 people, and following an advance of 6,400 a month earlier, whose figure was revised from a previously reported decrease of 2,400.

Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.0% in the three months to April, above forecasts for a 1.7% increase and after advancing by 2.0% in the three months to March.

Excluding bonuses, wages rose by 2.3%, above forecasts for a 2.1% increase and following a 2.2% increase in the three months to March whose figured was revised from an initial increase of 2.1%.

Following the report, the pound strengthened. GBP/USD traded at 1.4206 from around 1.4178 ahead of the release of the data, while EUR/GBP was at 0.7893 from 0.7912 earlier.

Meanwhile, European stock markets were broadly higher. London's FTSE 100 rose 0.85%, the EURO STOXX 50 traded up 1.34%, France's CAC 40 advanced 1.22%, while Germany's DAX rallied 0.69%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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