Investing.com - The jobless rate in the U.K. unexpectedly fell in May to its lowest level since 2005, while the claimant count rose less than expected in June and average earnings excluding bonuses came in lower than forecast, official data showed on Wednesday.
The Office for National Statistics said that the rate of unemployment unexpectedly fell to 4.9% in the three months to May, beating expectations for it remain steady at April’s reading of 5.0%.
The claimant count rose by a seasonally adjusted 400 in June, compared to expectations for a increase of 3,500 people, and following an advance of 12,200 a month earlier, whose figure was revised from a previously reported decline of 400.
Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.3% in the three months to May, in line with forecasts and after increasing by 2.0% in the three months to April.
Excluding bonuses, wages rose by 2.2%, below forecasts for a 2.3% increase and following a 2.2% increase in the three months to April.
Following the report, the pound strengthened. GBP/USD traded at 1.3119 from around 1.3089 ahead of the release of the data, while EUR/GBP was at 0.8378 from 0.8393 earlier.
Meanwhile, European stock markets continued trading higher. London’s FTSE 100 rose 0.35%, the benchmark Euro Stoxx 50 traded up 0.56%, France's CAC 40 advanced 0.62%, while Germany's DAX gained 0.64%.