UK Unemployment Rate Unexpectedly Drops to 4.7% in August Amid Mixed Hiring Indicators

The UK ILO unemployment rate unexpectedly fell to 4.7% in the three months to August, beating consensus expectations of 5.0% and down from 4.9% previously. Employment surged by 102,000, lifting the employment rate to 75.3% as unemployment fell by 47,000. Total average weekly earnings grew 3.7%, slightly below expectations and matching regular pay growth of 3.7%. Despite the headline resilience, underlying demand showed weakness as September provisional payrolls rose by only 13,000, job vacancies fell by 21,000 to 691,000, and claimant count rose by 30,300.