Most economists expected the jobless rate to remain at 3.8 per cent.
Early this year, the UK government announced some changes to its immigration laws.
JP Morgan’s Karen Ward said without weakness in the economy, inflation might stick around for much longer.
British inflation has eased back to its lowest level since March 2022 but remained higher than expected as food prices continued to rise at a near-record pace.
Government borrowing swelled to £25.6 billion in Britain last month amid the cost of energy support schemes, higher benefit payments and rising debt interest.
The biggest jump in food prices since 1980 pushed British inflation back into double digits last month, matching a 40-year high hit in July in a new blow for households.
It came after CPI inflation hit a new 40-year record of 9.4 per cent in June and is expected to peak at around 11 per cent later this year.
