The blue-chip FTSE 100 index gained 0.61%, while the midcap FTSE 250 index climbed 0.81% during morning trading.
Official data showed April payrolls dropped by 100,000, pushing the first-quarter unemployment rate up to 5%.
Deutsche Bank economists noted the weak report would likely halt the Bank of England’s tightening cycle.
Financial markets currently price in a modest 29.1% chance of a rate increase at the upcoming June meeting.
The stock market rebound provided a welcome reprieve for investors following a period of heightened domestic political uncertainty.
Prime Minister Keir Starmer vowed to remain at the helm despite growing pressure from several Labour lawmakers.
Investment banking and retail sectors led the market gains, advancing 2.58% and 2.49% respectively.
Meanwhile, IG Group shares surged 10.22% after the financial firm upgraded its annual revenue forecasts for the second time.
