UK Unemployment Rate Holds Steady at 4.9% in May, Employment Rises Amid Data Caveats

• UK unemployment rate held steady at 4.9% in May, below 5.0% forecast.
• Employment increased by 147,000, exceeding expectations.
• ONS noted data quality issues with the Labour Force Survey.

The United Kingdom’s unemployment rate held steady at 4.9% in the three months leading to May, defying expectations for an increase to 5.0%. This stability was accompanied by a significant rise in employment, with 147,000 more people in work during May, surpassing the 80,000 forecast. While average weekly earnings excluding bonuses remained consistent at +3.4%, total average earnings including bonuses saw a slight deceleration to +4.3%, falling short of the +4.5% projection. Furthermore, the number of people claiming jobless benefits in June increased by a modest 6.7K, considerably less than the anticipated 28.3K rise. The Office for National Statistics (ONS) noted that these figures are still subject to data quality issues due to ongoing transitions in the Labour Force Survey.