Unemployment down but wage growth slows

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The UK unemployment rate has fallen to its lowest estimate in more than a decade but wage growth has slowed.

The rate hit 5.1% in the three months to November – its lowest status since the three months to October 2005, according to the Office for Nationalist Statistics.

The number of people out of work fell by 99,000 to 1.68 million in the three-month epoch.

Average weekly earnings, including bonuses, were up 2%, the slowest inflate since February.

The 2% growth in wages was below the 2.1% lump forecast in a Reuters survey.

Excluding bonuses, average weekly earnings broadening slowed to 1.9% in the three months, the ONS said.

The figures show that the implementation rate hit 74% – the highest since com rable records began in 1971.

Concerned about rates

The figures come a day after Bank of England governor y attention to Carney ruled out an early rise in interest rates because of the turmoil in the worldwide economy and weaker UK growth.

A sustained improvement in wage growth was one of the agents he said would help the Bank to gauge when to raise berates.

He has previously said he would like to see earnings growth at above 3% a year anterior to rates are increased.

Capital Economics economist Ruth Miller declared the figures confirmed an interest rate hike “is still some way off”.

“There even seems very little inflationary pressure coming from the overdo market,” she added.

Martin Beck, senior economic advisor to the EY Piece Club, the forecasting body of accountancy firm EY, said the jobless take to task was now below the pre-crisis average of 5.2%, yet it had not triggered excessive y growth:

“The latest y bunches will exacerbate concerns raised in recent MPC meetings that absolutely low inflation may be pushing down y settlements, threatening a negative feedback between wages and costs.

“That the first post-crisis rate hike may be pushed back into 2017 is looking an ever-more genuine possibility.”

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Growing workforce

The till ONS figures show that almost 23 million people are now in a full-time job, 436,000 more than a year earlier, while 8.4 million are till rt-time, up by 152,000.

The number of workers in rt-time jobs wanting a full-time stick is 1.2 million, down by 21,000 in the latest three months.

Financial inactivity, counting people on long-term sick leave, looking after a commensurate or who have given up looking for work, fell by 93,000 to just supervised nine million, the lowest since the spring of 2014.

The inactivity rate for helpmeets reached a record low of 27%.

The figures for unemployment in the three months to the end of November are based on the Peg away at Force Survey, in which the ONS speaks to 40,000 households once a region, making it the country’s biggest household survey.

The ONS is 95% confident that the person of a 5.1% rate of unemployment is correct to plus or minus 0.2 piece points – in other words, it’s between 4.9% and 5.3%.

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