The number of Britons claiming unemployment benefit fell in May for the first time in three months, bringing it to its lowest level for over 26 years, official data showed yesterday.

The Office for National Statistics said claimant count unemployment rate fell 7,000 in May, its largest fall since January, to stand at 944,600.

That was the lowest claimant count since October 1975 and left the claimant count unemployment rate at 3.1 per cent.

Economists had forecast a slight rise in the claimant count in May after a revised 4,000 increase in April.

The figures underlined the strength of the British economy, which has begun to pick up strongly again after flirting with recession around the turn of the year.

While unemployment levels fell salary growth ticked up, while remaining relatively subdued.

Average earnings in the three months to April rose 3.3 per cent year-on-year. That was up from a 2.9 per cent rise in the previous three months and above a consensus forecast for a 3.2 per cent rise.

But it remained comfortably below the 4.5 per cent threshold which the Bank of England considers to be consistent with meeting its 2.5 per cent underlying inflation target.