A bigger-than-expected decline in jobless claims as well as a fall in unemployment indicate that the U.K. economy is recovering as suggested by recent economic data. The number of people claiming unemployment benefits decreased by 8,600 in May from April, the Office for National Statistics reported Wednesday. It was sharper than the expected drop of 5,000. The claimant count totaled 1.51 million in May, while the rate remained unchanged at 4.5 percent as expected by economists. Looking ahead, Vicky Redwood at Capital Economics said the labor market tends to be a relatively lagging indicator, so there could be further improvement in jobs growth in the coming months as the recent pick-up in economic activity feeds through. The number of unemployed decreased by 5,000 in the three months through April to 2.51 million, leaving the jobless rate at 7.8 percent of the economically active population. The rate also matched economists' expectations. At the same time, there were 29.76 million people in employment, up 24,000 from the November to January period. However, as the employment generation in the private sector may not be enough to offset job cuts in the public sector, unemployment could edge up gradually to stand around 2.65 million in early 2014, IHS Global Insight's Chief U.K. Economist Howard Archer said.