UK unemployment falls to 4.7% as wage growth supports BoE rate hike

Briefing by News4U · First published 2026-10-20 07:30:28 UTC

UK jobless rate dropped to 4.7% in June-August, while regular pay rose 3.7%. Data may bolster Bank of England case for November rate increase.

The UK unemployment rate fell to 4.7% in the three months to August, down from 4.9%, the Office for National Statistics reported. Employment rose by 102,000, while the number of unemployed fell by 47,000 to 1.712 million. [1] [2] [3] [4]

Regular pay growth rose to 3.7% from 3.6%, above the 3.1% inflation rate. Payrolled employees increased by 13,000 in September to 30.3 million. Job vacancies fell by 21,000 to 691,000, the lowest since 2021. [2] [3] [4]

The data may support a Bank of England interest rate increase next month. Investors expect the Bank Rate to rise to 4%. Chancellor John Healey receives a pre-budget boost ahead of the 28 October statement. [1] [2] [3] [5]

Sources

1. Surprise dip in jobless rate supports interest rate hike

   Sky News Business · 2026-10-20 04:31:00 UTC · Summary only

2. UK jobs market shows some signs of recovery

   RTÉ Business · 2026-10-20 06:24:33 UTC · Full text

3. UK unemployment rate falls in pre-budget boost, but vacancies dry up amid ‘jobs drought’ – business live

   The Guardian Business · 2026-10-20 06:29:24 UTC · Excerpt

4. Surprise drop in UK unemployment to 4.7%

   The Guardian · 2026-10-20 06:29:57 UTC · Full text

5. UK Jobs Data, Wage Growth Strengthens Case for Bank of England Rate Hikes

   Bloomberg · 2026-10-20 06:51:05 UTC · Summary only

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