UK unemployment fell to 3.8% in the first three months of the year, its lowest level since the end of 1974, official figures show.

However, the figures for the three months to March showed a slight slowdown in annual wage growth - excluding bonuses - to 3.3%, compared to 3.4% in the three months to February.

The number of people classed as unemployed fell by 65,000 to 1.3 million, according to the data from the Office for National Statistics (ONS).

The total number of people aged 16 and over in work rose by 99,000 to 32.7 million over the course of the three-month period, though that increase fell short of economists' expectations.

Overall it was the latest sign of Britain's labour market continuing to grow strongly despite Brexit uncertainty - helping maintain the household spending which drives the economy.


However, the hiring spree is seen by many experts as a reflection of how companies have opted to take on workers rather than commit to longer-term investments.

That has been reflected in weakening productivity, with data from the ONS published at the same time as the unemployment figures showing output per hour fell by 0.2% compared to a year ago, its third consecutive fall.

Employment minister Alok Sharma said: "Maintaining our record employment rate with unemployment falling again to just 3.8%, its lowest rate since 1974, once again shows the success of out balanced approach to managing the economy.

"We now need to shift some of our focus to up-skilling people and supporting them into roles with real career progression to create a modern workforce fit for the challenges of the 21st century."

However, TUC general secretary Frances O'Grady said: "Pay growth is stalling again.

"The last thing workers need is another hit in the pocket when real wages are still lower than a decade ago."

Tej Parikh, senior economist at the Institute of Directors, said: "The labour market remains in fine fettle, and continues to break new ground.

"Businesses have steadfastly expanded their workforce whilst the fog of uncertainty clouds longer-term investment decisions.

"After a long period of relentless hiring, however, the momentum behind employment growth appears to be slowing as there are fewer workers available to fill skyrocketing vacancies.

"The jobs boom has no doubt kept the economy ticking along but for many businesses progress on skills, training and education policy could not come sooner."