UK Labor Market Tightens, Adding Pressure on Bank of England
- Unemployment and wage growth both defy forecasts for loosening
- Central bank and economists had expected cooling labor market
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British wages shot up and unemployment fell unexpectedly in April, the latest signs that the resilient UK economy continues to defy efforts to cool demand and dampen inflationary pressures.
The unemployment rate dropped to 3.8% in the three months through April, undercutting forecasts for an increase to 4%, the Office for National Statistics said Tuesday. Average earnings increases excluding bonuses rose to the highest ever outside the pandemic.