Unemployment in the UK unexpectedly fell to 4.7% in the three months to August, down from 4.9%. This figure, released by the Office for National Statistics (ONS), contrasts with economists' expectations of a rise to 5%.
The ONS data also showed an increase in payrolled employees, with 13,000 more people on payrolls between August and September, bringing the total to 30.3 million.
However, the number of job vacancies continued to decline, falling by 21,000 to 691,000 in the three months to September. This marks the lowest level for vacancies since 2021, during the Covid pandemic.
Average wage growth, including bonuses, decreased from 3.9% to 3.7%. Excluding bonuses, average pay growth saw a slight rise from 3.6% to 3.7%. This average pay growth remains above the 3.1% headline rate of inflation, a point of concern for the Bank of England's interest rate setters.