UK jobs: Unemployment rate unexpectedly drops to lowest since Oct 2005

The Office for National Statistics noted on Wednesday, the UK’s official jobless rate surprised to the upside, unexpectedly dropping to 4.8% versus 5.0% last, hitting almost eleven-year lows.

The number of people claiming jobless benefits fell by 400 in May. The previous month's figure was revised sharply up to an increase of 6,400 from a decline of 2,400 in April. The claimant count rate stayed at 2.2% after a revision for April.

Wage growth, excluding bonuses surprisingly increased to 2.3% in the April quarter from a revised 2.2% in the quarter to March, while wages including bonuses remained steady at 2% versus a slowdown to 1.6% expected.