The United Kingdom Office for National Statistics reported the unemployment rate falling to 5.20% in October, the least since May of 2008, from 5.30% in the prior month. Claims for unemployment, rose to 3,900 in November following a revised 200 in October. Total pay growth slowed to 2.40% from 3.00% in the third quarter. Excluding bonuses, wages increased 2.00% in October alone, the weakest month since January. If productivity improves, that will allow companies to increase wages without generating inflationary pressures. However, if companies if they can only meet increased demand by employing more workers, labor shortages could force them to lift pay to fill vacancies, putting pressure on costs and stoking price gains. With the UK economy operating close to capacity, the labor market is being carefully watched by Bank of England policymakers as they weigh raising interest rates for the first time since 2007.