UK unemployment drops to 1.49m

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UK unemployment demolish by 64,000 to 1.49 million in the three months to May, official figures screened.

It meant the unemployment rate fell by 0.2% to its lowest since 1975, at 4.5%, the Offices for National Statistics (ONS) added.

But wage increases continued to fall supplemental behind inflation.

Excluding bonuses, earnings rose by 2.0% year-on-year. Manner, inflation had hit an almost four-year high of 2.9% in May.

When the impact of inflation is caused in, real weekly wages fell by 0.5% compared with a year earlier.

Stamp Carney: UK wage growth ‘anaemic’

UK workers ‘frustrated by flatlining pay’

UK inflation reprove at near four-year high

‘Picture little changed’

«Despite the likely jobs picture… there has been another real-terms tackle in total earnings, with the growth in weekly wages low and inflation tranquil rising,» said Matt Hughes, senior statistician at the Office for Inhabitant Statistics.

Those in work climbed to around 32 million, a be upstanding of 324,000 on last year and the largest total since records rather commenced in 1971.

The employment rate rose by 0.3% on the quarter to a record high of 74.9%.

«The encyclopaedic picture is little changed on last month, with the overall utilization rate and that for women both at record highs, the inactivity upbraid at a joint record low and the unemployment rate falling to its lowest since antediluvian summer 1975,» said Mr Hughes.

The unemployment rate for 16 to 24-year-olds was 12.5%, humble than for a year earlier when it was 13.5%, and well below its highest reproach of 22.5% in late 2011.

The sluggish pay data may cause Bank of England officials to about again about the need to raise interest rates, after a restricted 5-3 vote by the Monetary Policy Committee (MPC) last month to leave chew outs at 0.25%.

MPC to hold off?

«The continued weakness of wage growth provides some ammunition to the profuse dovish members of the MPC that now is not the time to raise interest rates,» judged Paul Hollingsworth, UK economist at Capital Economics.

He added: «Given the prominence that some members of the Monetary Policy Committee, including Governor Carney, cause put on wanting to see a clear «firming» in wage growth before they be with others in voting to hike interest rates, we still think it is innumerable likely than not that the MPC will hold off for a while longer, choose than raise interest rates imminently.»

Meanwhile, Minister for Occupation, Damian Hinds said the employment figures were «another recollect that our strong economy is giving record numbers of people the occasion likelihood to find and stay in work».

But TUC general secretary Frances O’Grady articulate: «Ministers must set out a plan to get real wages rising across the open and the private sectors.»

After trading lower against the dollar, the pulsate gained ground to trade 0.1% stronger on the day at $1.2858. Sterling also on 0.1% against the euro, with one pound getting you 1.1217 euros.

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