The UK’s unemployment rate has fallen unexpectedly, partly due to fewer students looking for work while they study.
Unemployment fell to 4.9% in the three months to February, the Office for National Statistics (ONS) said, despite predictions it would remain unchanged at 5.2%.
The drop has been driven by a rise in those not actively seeking work as economically inactive people are not included in the jobless figures.
Meanwhile, wages rose at an annual pace of 3.6% between December and February, the weakest rate since late 2020. Despite the slowdown, pay is still rising faster than inflation.
Liz McKeown, director of economic statistics at the Office for National Statistics (ONS) figures, said: “Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies.”
The inactivity rate – which measures the proportion of people unemployed but not looking for work – was 21% in the December to February period, up from 20.7%.
Most of the data released by the ONS was gathered before the outbreak of the US-Israeli war with Iran, which has led to a surge in energy prices.
If these energy prices remain high, economists have warned this could affect the jobs market in coming months.
