Getty ImagesThe UK's unemployment rate has fallen unexpectedly but wages are growing at their slowest pace for more than five years, the latest official figures show.
Unemployment fell to 4.9% in the three months to February, despite predictions it would remain unchanged at 5.2%.
The fall was mainly caused by an increase in inactivity, the number of people not looking for work, who are not included in the employment rate.
Wages rose at an annual pace of 3.6% between December and February, the weakest rate since late 2020. However, despite the slowdown, pay is still rising faster than inflation.
Liz McKeown, director of economic statistics at the Office for National Statistics (ONS) figures, said: "Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies."
The ONS figures also showed that the number of workers in payrolled employment slipped by 11,000 in March, the first piece of data that covers the period of the Iran war.
The number of job vacancies fell to their lowest level in almost five years, dropping to 711,000 for the January to March period.
The jobs market "showed signs of stabilising in February, but a reversal may be on the horizon", said Yael Selfin, chief economist at KPMG UK.
"Unemployment fell slightly to 4.9% in the three months to February, consistent with survey evidence suggesting hiring activity was recovering before the conflict in the Middle-East.
"However, unemployment is likely to trend higher in the coming months as firms scale back on hiring in response to rising costs and weaker demand."
