British wage growth picks up pace

British wage growth accelerated to the fastest pace since August 2001 in the quarter through February amid falling unemployment and increased bonuses at service companies, reinforcing expectations for rising interest rates.

Average earnings growth including bonuses jumped to 4.9% in the three-month period after a revised 4.7% rise in January, the statistics office in London said. The number of workers claiming unemployment benefits in March declined for a 10th month by 4,200 to 882,200, after a revised 5,300 drop in February.