UK unemployment rate down as number in work rises above pre-pandemic level

Official figures show that Britain's unemployment rate has fallen unexpectedly as the number of people in work hit a record high and rose past its pre-pandemic level for the first time.

The Office for National Statistics said Tuesday that the jobless rate fell to 3.8% in the three months to April, from 3.9% in the previous quarter. Most economists were expecting the rate to edge up to 4%.

As the unemployment rate fell, the agency said, the country's employment rate rose to 76% from 75.9%, with the number of people in work at an all-time high of 33.1 million.

Darren Morgan, director of economic statistics at the agency, said the biggest driver in recent jobs growth is health and social care, followed by hospitality.

The agency also found that wages rose sharply, a development that may cause concern at the Bank of England, which is widely expected to raise interest rates once again next week.