The UK unemployment rate rose for the first time in a year in April, but there were signs that more people were returning to work after the economy reopened from the Covid-19 blockade.
Most recently, official data showed the unemployment rate rose to 3.8% in the three months to April after recording a reading of 3.7% in the previous month which was also the lowest level since 1974.
The figure also fell short of market expectations to drop to 3.6%.
Meanwhile, total unemployment benefit claims were reported to have dropped by 19,700 in May compared to the expected reduction of 42,500.
The UK’s average weekly income, excluding bonuses, reached 6.8% in the three months to April, missed expectations of 7.2% and down from the previous reading of 7.0%.
The decline in UK incomes shows consumers ’purchasing power is declining amid inflationary pressures that are stinging households in the UK.
The Central Bank of England (BOE) policy meeting on Thursday will be the main focus of the market to determine the central bank’s further direction.
