UK unemployment rate falls unexpectedly but wage growth slows, ONS reveals

The UK unemployment rate unexpectedly fell to 5.2% in the three months to October from 5.3% the previous quarter, according to official data on Wednesday.

Employers also added more jobs than forecast during the period, the Office for National Statistics revealed. Employment rose by 207,000 to 31.3m, beating analysts' estimates of 150,000 and marking a pick-up on the 177,000 recorded in the prior three months.

The number of unemployed people fell by 110,000 to 1,71m during the quarter.

However, average weekly earnings increased 2.4% compared to the same quarter a year ago, missing expectations for a 2.5% rise and following the previous quarter's 3% gain.

"The latest UK figures show a slowdown in wage growth, adding to evidence that there is no need for the Bank of England's Monetary Policy Committee to follow the Federal Reserve in raising interest rates just yet," said Scott Bowman, UK economist at Capital Economics.

Jobless claims rose 3,900 in November, worse than the 800 claims predicted and October's 200. The claimant count rate last month rose 2.3%, as anticipated and the same as October's growth.

"In coming months, as unemployment approaches its natural rate, we expect employment growth will slow," Bowman added. "However, we are confident that increases in productivity will be able to take over from employment in driving GDP growth and provide a boost to wages."