By Jason Douglas and David Hodari

LONDON--The number of workers in the U.K. from the European Union recorded its sharpest annual drop on record in the second quarter, highlighting how Brexit and economic recovery in the eurozone are denting Britain's appeal for European citizens.

There were 2.3 million EU nationals employed in the U.K. in the second quarter, according to official figures published Tuesday, 86,000 fewer than a year earlier. That was the largest annual decline since records began in 1997, the agency said.

The U.K., thanks to the English language and abundant job opportunities, has for years been a magnet for EU citizens, sucking in workers from across the 28-member bloc.

But unease over high levels of immigration in parts of the U.K. became one of the driving forces behind the country's 2016 decision to leave the EU.

Tuesday's figures offer the latest evidence the immigration trend is going into reverse, reflecting a strengthening eurozone economy and uncertainty surrounding the U.K.'s departure from the EU in March 2019.

London and Brussels have yet to agree terms for the U.K.'s withdrawal, with the rights of workers among those issues still subject to negotiation.

The data showed an exodus of workers from core EU nations including France and Germany as well as newer member states such as Poland and Latvia.

Still, the number of EU nationals employed in the U.K. in the second quarter was slightly higher than it was just before Britons voted to quit the EU in June 2016. The number of Romanian and Bulgarian nationals working in the U.K. rose on the year.

Tuesday's jobs report showed the unemployment rate in the U.K. in the three months through June declined to 4%, its lowest level in since the mid-1970s.

Average weekly earnings growth slowed, however, to 2.7%, from 2.8% the previous three months.

Write to Jason Douglas at Jason.Douglas@wsj.com and David Hodari at David.Hodari@wsj.com

(END) Dow Jones Newswires

August 14, 2018 04:57 ET (08:57 GMT)

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