UK jobs market was fragile before Iran conflict

The Office for National Statistics reported unemployment at 4.9% for the three months to February, while total annual pay growth was 3.8% and real pay growth was about 0.7%.

Latest Office for National Statistics data showed the UK's unemployment rate fell to 4.9% in the three months to February. Beneath the headline, economic inactivity rose and payrolled jobs have continued to decline. Annual pay growth was weak, and once adjusted for inflation real pay growth was close to zero. Economists warned the Iran conflict adds a new risk to the nascent recovery. Key figures: - Unemployment 4.9% in the three months to February, down from 5.2% previously. - Economic inactivity increased, with more people not actively seeking work. - Total annual pay growth 3.8%, and real pay growth around 0.7%. - Provisional payrolled jobs for March were down about 65,000 year-on-year. Summary: The figures show a labour market with a headline fall in unemployment but clear underlying weakness in activity, jobs and wages. The Iran conflict introduces additional price and growth risks for the UK outlook. Undetermined at this time.