British unemployment fell to lowest level is 42 years of 4.3% in the three-month to July, it is the lowest reading since 1975, from a previous 4.4%. Employment levels rose by 181,000 jobs in the last three months to 32.1 million, the strongest since the last quarter of 2015, with employment rate rising to new record highs of 75.3%.
On the other hand, the change in unemployment complaints fell by about 2,800 in August after reviewing the previous month's reading to increase the decrease to 2,900. Year-on-year basic wages rose by 2.1% in the three-month to July, unchanged from the previous reading and below market expectations of 2.3%.
The wage figures show the dilemma for Bank of England policymakers about raising interest rates, especially those who want to keep them at their lowest levels. The data generally indicate the strength of the British labor market.
Expectations are rising for the Bank of England for rates hike, especially after inflation rose to 2.9% in August, its highest level in four years. Markets are predicting that the decision will be made by the end of 2018, although some economists are not convinced.
Following the data, sterling fell slightly from its highest level in more than a year at 1.3328 by about 60 pips, currently trading at 1.3270 levels.
