UK Unemployment Surprise Fall

The Office for National Statistics reported that the drop in unemployment was largely driven by an increase in economic inactivity, particularly among students, rather than a rise in total employment.

Chancellor Rachel Reeves welcomed the figures but warned that the ongoing energy shock from the Iran war poses a significant risk to future growth.

Job vacancies have also fallen to their lowest level in nearly five years as businesses become more cautious.

The data is not expected to alter the Bank of England's current stance on interest rates.