According to the UK's Office for National Statistics (ONS), between January and February, the claimant count (which is the number of people claiming benefits) decreased by 32,300. This is its sharpest drop since November of 1997.
The decrease came as a surprise to market analysts who were expecting a rise of 8,200 claimants.
The ONS figures provided a boost to the pound which, after the publication of the report, rose against all major currencies and reached a three-week high of 1.5380 against the dollar.
After having peaked, it seems that - at least in the UK - unemployment is starting to stabilize. Should this trend be confirmed in the months ahead, it could lead the BoE to tighten its loosening monetary policy.
Today's Spotlight Shines on US Unemployment Figures.
That's because last week, initial claims fell to 462,000 (below market expectations of 456,000).
This week, economists are forecasting 456,000 new claimants and will be watching closely to see whether US corporations are still reluctant to hire.