Analysts at TD Securities say the UK’s labour report for the 3 months ending March provided a mixed batch of news.

• The unemployment rate improved to another multi-decade low of 3.8%, but wage growth slowed slightly to 3.2% y/y for headline wage growth, while the ex-bonus measure slowed to 3.3% y/y and the important private sector regular pay measure slowed to 3.5% y/y.
• The decline in the unemployment rate came entirely from a sharp reduction in the number of people looking for work, perhaps over nervousness about job prospects ahead of the original 29 March Brexit deadline.
• On net, this report likely doesn't have any major implications for the Bank of England's MPC: they were expecting the unemployment rate to dip to 3.8% in 19Q2 anyway, and the slowdown in core wage growth is likely a bit faster than they were expecting.