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Surprise fall in UK unemployment rate

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Wages are still rising but at a slower pace as the unemployment rate surprisingly fell, according to official figures.

The percentage of people who are out of work and looking for a job dropped to 4.2% in July, said data from the Office for National Statistics (ONS).

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A rise had been forecast by economists. Those polled by news agency Reuters expected a rise to 4.5%, up from the 4.4% recorded a month ago.

A low unemployment rate can indicate a healthy economy and increase pressure for wages to rise.

The ONS figures showed wages, excluding bonuses, grew 5.4% in the three months to June, less than the 5.7% experienced a month before.

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