UK jobs market was in a fragile state – even before Iran war threatened recovery

Despite surprise fall in unemployment, weak wage growth and inflation pressures put the squeeze on workers

• UK unemployment shows surprise fall to 4.9%

• Business live – latest updates

Despite a surprise fall in the unemployment rate, the latest jobs data show the labour market in a fragile state, even before the Iran war threatened to derail the UK’s nascent economic recovery.

At 4.9% in the three months to February, the unemployment rate was down from 5.2% in the previous three months, according to the Office for National Statistics.