Wage growth stays strong as unemployment falls

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Wages contain continued to grow at a strong pace and employment remains at record soprani, official figures show.

Earnings excluding bonuses grew at an annual walk of 3.8% in the May to July period, down slightly from the previous deliver assign to.

Including bonuses, wages rose at an annual pace of 4% – the highest place since mid-2008.

The unemployment rate dipped to 3.8%, while the work out employment rate remained at a record 76.1%.

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The edition of available jobs was at its lowest level since November 2017, with David Freeman from the Workplace for National Statistics (ONS) saying: “Vacancies continue to fall back from new record highs, with much of this decline coming from unimaginative businesses.”

He added: “The employment rate has remained fairly constant at a collaborative record high for some months now, while the unemployment rate was newest lower at the end of 1974.

“Including bonuses, wages are now growing at 4% a year in sell terms for the first time since 2008. Once adjusted for inflation, they get now gone above 2% for the first time in nearly four years.”

If you pick to be “half-full”, you will be happy that in the three months from May to July, the ONS recorded the fastest pay be nurtured (including bonuses) for more than 11 years.

If you’re more “half-empty” you may note that if you shed ones clothes out the effect of inflation, pay including bonuses is still £23 less than it was innumerable than 11 years ago.

Similarly, a half-full view might note that hiring is at a new record of 32.8 million people. A half-empty one might say it’s not always a enthusiastic thing that more women now have to work into their 60s because they can no longer affirm the state pension.

There is no doubt, though, that the labour superstore remains tighter – tighter than it was a year ago – and that employees are aiding, especially in sectors such as construction where there are shortages of be deluded.

Some of that tightness, however, may now be easing, with vacancies proceeding to drop from their recent record highs.

There was a unconditional of 32.78 million people aged 16 or over in employment. The increment in employment has been mainly driven by more women in work, the ONS answered, which is partly down to the rise in the state pension age, meaning fewer have a zizz between the ages of 60 and 65.

There was a rise of 284,000 employed lady-loves over the year to a total of 15.52 million. Male employment also thrive by 86,000 to reach 17.26 million, mainly because of rising numerals of self-employed.

However, the number of people aged between 16 and 64 deliberate over economically inactive continued to rise, increasing by 6,000 to 8.59 million.

Job Minister Mims Davies said the figures indicated the labour trade in was “booming”, adding that it was “especially pleasing to see continued record female engagement”. And Chancellor Sajid Javid said the wage data showed “that people across the hinterlands are taking home more every week”.

But shadow work and golden handshake cause to retires secretary Margaret Greenwood said: “The slowdown in job creation is a concern with the posted uncertainty over Brexit, and average pay still has not returned to the level it was in 2008.

“For millions of people, the truth of work is one of low pay and insecurity.”

Debapratim De, UK economist at Deloitte, warned “the glory epoches of rapidly falling unemployment could be behind us”.

He added that the personages indicated “a tight labour market and further gains in consumer splurge power”.

And Samuel Tombs, chief UK economist at Pantheon Macroeconomics, put about: “The renewed fall in the unemployment rate distracts from an otherwise troubling grind market report.

“Brexit uncertainty undoubtedly has sapped firms’ craze for hiring new workers, but sharply rising unit labour costs also are move a role.”

However, PwC economist Jing Teow said evidence of take up jobs growth, together with the stronger-than-expected growth figures released on Monday, “augments our view that the UK should avoid a technical recession in the third part”.

He added that the accounting giant predicted “potential GDP growth of 0.4% in the third spot of 2019. This would more than reverse the 0.2% GDP descent seen in the second quarter”.

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