UK Unemployment Rate Drops To Lowest In Decades

Javier Howell
August 17, 2017

Employment in Britain has reached an all-time high and pay growth has picked up pace, easing the pressure on cash-strapped households confronted by higher inflation.

The ONS also reported that the overall economy also added 125,000 jobs in the three months, taking the overall 16-64 employment rate tp 75.1 per cent, up from 74.8 previously and hitting a new record high.

This is a slight increase on the previous March to May quarter, when the ONS revised down its preliminary figure to 1.9%.

Latest estimates show that average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) fell by 0.5%, both including and excluding bonuses, compared with a year earlier.

"Ongoing anaemic earnings growth reinforces the case for the Bank of England to hold off from an interest rate [hike] any time soon - especially given a struggling economy and highly uncertain outlook", said Howard Archer, chief economic adviser to the EY ITEM Club.

UNEMPLOYMENT IN the United Kingdom fell by 57,000 in the three months to June, official figures show, bringing the jobless rate down to 4.4% - its lowest since 1975.

It is still slightly behind the United Kingdom rate, which also fell from 4.5% to 4.4%.

Meanwhile, claimant count fell by 4,200, compared with forecasts of a fall of 3,700.

'The task now is to build on this success through Jobcentre Plus and our employment programmes so that everybody can benefit from the opportunities being created'.

Once bonuses are stripped out, pay expanded by 2.1% over the period, rising from 2%.

"This is the fourth month in a row where wages have fallen behind the cost of living".

'Ministers are sitting on their hands as another living standards crisis unfolds.

The ONS also revealed today that United Kingdom unemployment hit its lowest level in 42 years but average earnings continued to lag behind earnings in Q2.

Sterling bounced 0.18 per cent to $1.2891 in the wake of the data.

The participation rate rose slightly to 65.1 per cent, meaning more people were in work or looking for it, but the job creation last month was all part-time, with 20,300 full-time positions lost.

Other reports by Insurance News

Discuss This Article