- Peter Dixon, an economist at Commerzbank AG
The number of people in the U.K. claiming unemployment benefits fell more than initially estimated in May, while the number of people in the labour force reached the highest level since records began in 1971. According to figures provided by the Office for National Statistics, Britain's jobless claims tumbled 8,600 from April to 1.51 million, outpacing analysts' expectations of a 6,800 drop. Meanwhile, jobless rate held steady at 4.5%. Figures also showed that there are 29.8 million people employed in the country, with total pay rising 1.3%, compared with the last month's revised figure of 0.6% and well above analysts' projections of a 0.2% rise. However, excluding the effect of bonuses, which are usually strong in April, earnings rose even paltrier 0.9% on a yearly basis.
Data also showed that unemployment in Scotland decreased by 6,000 over the three months to April, while in Northern Ireland and England unemployment was down by 5,000 and 6,000, respectively. In Wales no change in the jobless total was registered. Recent data is adding to further evidence the economy is gathering momentum after returning to growth in the first quarter of 2013, and surveys suggested businesses are planning to recruit more staff in the upcoming months. Still, the nation's labour market is slow to respond, even after being resilient last year, when the U.K. struggled to avoid another recession.
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