According to the Office for National Statistics (ONS), the unemployment rate for the period between February to April 2014 came in at 6.6%, down from 7.2% for the previous three month period and 7.8% for the comparable period last year.
“Comparing February to April 2014 with November 2013 to January 2014, there was a large increase in employment and a large fall in unemployment,” the ONS said
“There was a further fall in the number of economically inactive people aged from 16 to 64. These changes continue the general direction of movement over the past two years,” it added.
The number of unemployed people claiming benefits also fell during the period, down 27,000 to 1.09 million people, the lowest this number has been since October 2008.
According to Nick Beecroft, senior markets analyst Saxo Bank, these numbers increase the pressure on the MPC to raise rates.
“The latest UK employment report was simply exceptional,” he said.
“The headline April ILO 3M average unemployment rate fell from 6.8% to 6.6%, vs expectations for 6.7%, taking this measure to a low point since January 2009, and the 3 month over 3 month employment change, at +345,000, was the largest since the series was first published in July 1992,” he added.
Paul Read, co-head of fixed interest at Invesco Perpetual, said that the jobs report supported the view that the UK economy is doing well.
“The money markets are predicting a modest hike by the BoE either late this year or early next year, consensus is that we will get something early next year,” he said.
