UK jobless rate falls more than expected to 5.8% from 6%

The UK unemployment rate fell to 5.8% in the three months to November from 6% the previous period, ahead of the 5.9% forecast.

The number of people in employment during the period has increased by 37,000 to reach 30.80m people, the Office for National Statistics (ONS) revealed. However, it missed market expectations for a 74,000 gain.

The number of people applying for jobless claims fell by 58,000 to reach 1.91m in December, exceeding estimates for it to have dropped by 25,000. Meanwhile, the number of individuals unable to participate in the labour force aged between 16 and 64 rose by 66,000, reaching 9.09m.

Weekly earnings rose 1.8% in the three months to November, falling short of market consensus for a 1.9% increase but surpassing the prior quarter's 1.6% growth.

“What’s particularly important is that regular wage growth is outstripping inflation to the greatest extent since 2008," said Chris Williamson, chief economist at Markit. "This ‘real’ wage growth has been the missing ingredient of the UK’s economic recovery from the recession."