Investing.com - The jobless rate in the U.K. remained as expected at a 42-year low In April though wages, excluding bonuses, eased much more than expected, widening the gap between the country’s inflation rate, official data showed on Wednesday.
The Office for National Statistics said that the rate of unemployment was unchanged at 4.6% in April, in line with expectations and at its lowest level since 1975.
The claimant count increased by a seasonally adjusted 7,300 in May, compared to expectations for a gain of 20,300 people and following a rise of 22,000 a month earlier, whose figure was revised from a previously reported increase of 19,400.
Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.1% in the three months to April, missing forecasts for a 2.4% rise and compared to the previous month’s gain of 2.3% (revised from an initial 2.4%).
Excluding bonuses, wages rose by just 1.7% in the three months to April, compared to expectations for a 2.0% gain and March’s reading of 1.8% that was lowered from an initial 2.1% advance. That was the weakest regular pay increase since February 2016.
Following the report, the pound trimmed gains. GBP/USD traded at 1.2750 from around 1.2756 ahead of the release of the data, EUR/GBP was at 0.8791 from 0.8787 earlier, while GBP/JPY exchanged hands at 140.52 compared to 140.60 previously.
Meanwhile, European stock markets were broadly higher. London’s FTSE 100 rose 0.30%, the benchmark Euro Stoxx 50 traded up 0.67%, France's CAC 40 advanced 0.90%, while Germany's DAX gained 0.48%.