The UK’s unemployment rate has dipped to 5.5 per cent, a brighter reading than economists had expected, and well down on the 6.2 per cent rate that prevailed a year ago.

The ONS said employment was up by 42,000 compared to the previous quarter, well above the 18,000 area that economists had expected, according to a survey by Bloomberg. The proportion of people aged 16 to 64 in work reached 73.5 per cent in the May-to-July period, a joint record high. (See the chart from the ONS below.)

Said ONS statistician Nick Palmer:

Employment is up on the previous three months, with its headline rate returning to a record high. Meanwhile regular pay – not including bonuses – is growing at its fastest for over six years

In total, 22.74m people in the UK were working full time in the May to June period covered by the latest statistical release, a rise of 361,00 compared to the same period a year ago.

Both total pay, which includes bonuses, and regular pay, increased by 2.9%.

In response to this flurry of positive news, sterling is now up by 0.3 per cent on the day at $1.5381. The sterling chart below is courtesy of Bloomberg.