Unemployment rate falls to 4.3% but wages remain below inflation rate
UK unemployment fell by 75,000 in the three months to July down to 4.3% from 4.4% in the previous quarter.
However, with inflation hitting 2.9% in August, wages are failing to keep up with this rate as wages dropped by 0.4% in the last quarter. The high rise in inflation is due to the value of the pound falling since the Brexit vote last year.
Employment minister Damian Hinds said: “The strength of the economy is helping people of all ages find work, from someone starting their first job after leaving education, to those who might be starting a new career later in life.
“But there is more to do, and we will continue to build on our achievements through our employment programmes and the work of Jobcentre Plus.”
Samuel Tombs, chief UK economist for Pantheon Macroeconomics, said: “The latest labour market data are, on balance, a setback for the hawks on the MPC arguing for higher interest rates,” he said.
“The three-month average number of job vacancies in August was 0.9% lower than in the previous three months, pointing to a slowdown in employment growth ahead.”
Picture credit: Office of National Statistics