UK unemployment drops to its lowest level since mid-2008

AP News
Posted: Oct 14, 2015 6:10 AM

LONDON (AP) — Britain's unemployment level fell to 5.4 percent in the three months ending in August, its lowest level since mid-2008.

The Office of National Statistics said Wednesday there were about 1.8 million people seeking work, 79,000 fewer than those from March to May 2015.

Dean Turner, an economist at UBS Wealth Management, says there was little slack remaining in the jobs market and that rising wage pressures will likely prompt the Bank of England to hike interest rates. There's been little pressure lately on the bank to raise rates because inflation — now at minus 0.1 percent — has been low.

But Turner says that tighter monetary policy "is unlikely to derail the UK from its current growth trajectory as nascent signs of productivity growth should keep inflation pressures in check."