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 The number of unemployed fell by 2,000 in the three months to March,
the Office for National Statistics said, while the unemployment rate
held steady at 5.1 percent as expected by economists in a Reuters
poll.
The number of people in work rose by 44,000 in the first quarter of
this year, taking the employment rate to a record high of 74.2
percent. But the pace of hiring slowed from 195,00 in the last three
months of 2015.
Britain's economy slowed in the first quarter, and recent data
suggested it could lose further momentum as uncertainty around the
June 23 vote takes a toll on consumers and investors.
"With or without the EU referendum, a slower rate of job gains
seemed likely but the actual outturn was by no means as bad as many
feared," said Sam Hill, senior UK economist at RBC.
"Ahead of the EU referendum, it is very difficult for either us or
the (Bank of England) to take a firm view on the extent to which
hiring activity has been affected by the uncertainty of the outcome
which ... means the near-term implication for policy is very
limited."
The BoE has said the most recent weakness in data reflects the
forthcoming vote, but has also said it would treat economic data
around the vote with caution.
The number of people making jobless claims fell by 2,400 in April to
737,800 but was revised sharply higher in March. The claimant count
rose by 14,700 in March - the biggest increase since September 2011.
SLUGGISH WAGE GROWTH
Wages largely lagged the broader economic recovery in recent years,
and now that the economy was slowing, that weakness was likely to
persist, analysts said.
Excluding bonuses, earnings rose by 2.1 percent year-on-year in the
three months to March, down from 2.2 percent and against
expectations for a 2.3 percent rise.
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"There are plenty of reasons for companies to be taking a cautious
stance on pay deals at the moment, particularly with a more fragile
growth outlook and political uncertainty on the horizon," Lee Hopley,
EEF chief economist said.
A survey by the industry group showed pay increases in the
manufacturing sector, which has been struggling of late, averaged
1.7 percent in the three months to April, down from 1.8 percent in
the three months to March.
The BoE is watching for signs of stronger pay growth as it considers
when to raise rates from their record low, which economists expect
will only happen next year.
The ONS said there was no anecdotal evidence that the vote on Brexit
and that the introduction of a higher minimum wage in April had
affected the data.
Private industry surveys have pointed to falling jobs vacancies and
suggest employers have favored temporary staff over permanent staff
as the referendum nears.
(Editing by Dominic Evans)
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