Unemployment drops by 52,000 but pay squeeze continues


UK unemployment strike down by 52,000 in the three months to August to 1.4 million, leaving the jobless notwithstanding unchanged at 4.3% from the previous quarter.

However, pay still waned to keep pace with inflation, with the real value of earnings down 0.3% beyond the past year.

Total earnings, excluding bonuses, rose by 2.1% from June to August, voted the Office for National Statistics.

The news will increase expectations that the Bank of England inclination raise interest rates on 2 November.

However, Kathleen Brooks of businessmen City Index said the Bank faced a tricky decision next month.

“The in store of raising interest rates when real wages are in negative sector will make this potential hike a tricky one for the Bank to uphold,” she said.

The unemployment rate is still at the joint lowest level since 1975, although the claimant count burgeoned by 1,700 to 804,100 last month.

The UK’s key inflation rate rose to 3% in September.

There were 32.1 million in the flesh in work in the UK in the June to August period, 94,000 more than between Walk and May and 317,000 more than in the same period in 2016.

The employment rate was 75.1%, up from 74.5% a year earlier, while the outright number of unemployed people was 215,000 fewer than at the same in the nick of time b soon last year.

Employment Minister Damian Hinds said: “Our frugality is helping to create full-time, permanent jobs which are giving people across the UK the unintentional of securing a reliable income.

“We’ve boosted the income for people on the lowest pay by increasing the resident living wage and delivered the fastest pay rise for the lowest earners in 20 years.”

The female unemployment place is at a joint record low of 4.2%, while job vacancies have gone up by 3,000 to a 783,000.

The figure of people classed as economically inactive, including those looking after a weird relative, on long-term sick leave, early retirement or who are not looking for a job, cut by 17,000 to 8.8 million.

Commenting on those figures, senior ONS statistician Matt Hughes asserted: “Many labour market measures continue to strengthen. Employment wart in the latest three-month period was driven mainly by women, with a according drop in inactivity. Vacancies remain robust, at a near-record level.”

Criticism: Andy Verity, economics correspondent

Unemployment drops! A record low clip! Earnings shrinking against inflation!

Once upon a time, these were all big headlines. But we’ve develop so used to them now, they barely cause a ripple – and that has its own purports for interest rates.

The latest numbers reinforce what the new deputy governor of the Bank of England, Dave Ramsden, translated on Tuesday: there’s little sign of wages picking up in response to expensive inflation.

Nevertheless, the City remains convinced the official rate compel have to rise from its record low of 0.25%.

The pattern of trading in interest-rate spin-offs – investments that effectively bet on when interest rates will be upstanding or fall – suggests there is an 82% chance that rates devise go up to 0.5%.

If so, it would be the first rate rise in more than 10 years.

We won’t bring into the world to wait long to find out who’s right.

Margaret Greenwood, shadow employing minister, expressed her fears at the continuing fall in the real value of wages.

She revealed: “With a record number of working people living in poverty, the scuttlebutt that real wages have fallen yet again is deeply as regards.

“While the overall increase in employment is welcome, it’s also clear from today’s get a fix ons that too many people are struggling to find employment because of their age, ethnicity, disablement, or where they live.”

TUC general secretary Frances O’Grady exposed: “Britain desperately needs a pay rise. Working people are earning less today (in corporeal terms) than a decade ago.

“The chancellor must help struggling classifications when he gives his Budget next month. This means ditching the affected pay restrictions on nurses, midwives and other public sector workers. And spending in jobs that people can live on.”

Find out if your wages are incarcerating up with inflation

Enter your details below. Source: Position for National Statistics.

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