Investing.com - The jobless rate in the U.K. unexpectedly fell to the lowest level since 2006 in November, while the average earnings index increased less than forecast, painting a mixed picture of the labor market, official data showed on Wednesday.
The Office for National Statistics said that the rate of unemployment dipped to 5.1% in the three months to November from 5.2% in the preceding three-month period. Analysts had expected the jobless rate to hold steady at 5.2%.
The report also showed that the claimant count fell by a seasonally adjusted 4,300 in December, compared to expectations for an increase of 2,500 people, and following a drop of 2,200 a month earlier, whose figure was revised from a previously reported gain of 3,900.
Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.0% in the three months to November, missing forecasts for a gain of 2.1% and after increasing by 2.4% in the three months to October.
Excluding bonuses, wages rose by 1.9%, above expectations for 1.8% and following a 2.0% increase in the three months to October.
That may add to the case for the Bank of England to keep its benchmark interest rate at a record-low 0.5% for now.
GBP/USD was trading at 1.4145 from around 1.4134 ahead of the release of the data, while EUR/GBP was at 0.7728 from 0.7732 earlier.
Meanwhile, European stock markets were sharply lower. London’s FTSE 100 sank 2.7%, the EURO STOXX 50 tumbled 3%, France's CAC 40 lost 3.2%, while Germany's DAX slumped 3.1%.