The employment rate, or the proportion of 16-64-year-olds working, hit 74.2%, the joint highest since records began in 1971.
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The claimant count is 47,900 lower than a year ago. The unemployment figure exceeded expectations of 5.1%, the prior five releases were reported at 5.1%.
In three months to April, average earnings including bonus increased 2 percent and that excluding bonuses climbed 2.3 percent.
In April alone, regular pay growth jumped to 2.5 per cent from 1.9 per cent in March, the biggest rise since August previous year. City economists had pencilled in a fall in total wages growth to 1.7%. “Our economic plan is delivering jobs and security right across Britain”.
ING Bank’s James Knightley said: “Brexit risks obviously nullify this report, but should the United Kingdom stay then the data do help to build the case for a rate rise early next year”.
Also she noted that, delving below the surface, there was a less positive picture, with most of the rise in employment driven by growing self-employment rather than employees, “which may not be a good thing if it reflects people struggling to find jobs”.
“The labour market now clearly is tight enough to facilitate a recovery in wage inflation”.
“The UK private sector effectively stopped hiring in the spring”. Given low inflation and virtually stagnant productivity, workers are extracting wage increases at the top end of what employers can afford.
There have also been warnings that the new National Living Wage could affect jobs growth.
“Already in 2016 many companies such as Aston Martin, MotoNovo, TVR, Essentra, EE and BT have all chosen Wales as the place to locate or expand their new businesses, creating employment and training opportunities for thousands of Welsh workers”.
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Data from the Office for National Statistics (ONS) revealed the United Kingdom unemployment rate fell to 5% in June – the lowest level since October 2005.
