Markets were surprised at the European session which saw the UK unemployment rate fall to its lowest level since 1974 in the three months to August.
However, this is not good news for the Bank of England (BOE) as the decline was driven by workers leaving the labor market.
According to a report released by the Office for National Statistics (ONS), the UK unemployment rate fell to 3.5% from 3.6% recorded the previous month.
Of that figure, the number of people classified as inactive (not working or looking for work) jumped by 252,000, the biggest increase since records began in 1971.
These figures indirectly add to concerns about a labor shortage that makes it difficult for companies to find the workers they need to grow.
It is also seen to push up wages and add to inflationary pressures, making it harder for the BOE to fight back with higher interest rates.
It is different from the view of Finance Minister Kwasi Kwarteng who sees the figure as showing strength in the UK.
He said in a statement that the fundamentals of the UK economy remained resilient with unemployment at an almost 50-year low.
Average earnings growth excluding bonuses rose to 5.4% showing increasing pressure on the living standards of millions of households.
