The UK unemployment rate unexpectedly dropped to 4.2% in April-June, with 51,000 fewer unemployed individuals. Despite an increase of 97,000 people in employment, the economic inactivity rate also rose to 22.2%. Vacancies decreased to 884,000 and public sector pay growth exceeded that of the private sector.
Chancellor Rachel Reeves emphasized the need to support people into employment, while Work and Pensions Secretary Liz Kendall pledged to help individuals get back to work. Premier Miton Investors stated that the UK economy is performing well, with wage growth in line with expectations.
However, wage growth slowed in the quarter, although earnings continued to outpace inflation. Real pay increased by 3.2% for regular pay and 2.2% for total pay, with the slowdown potentially prompting the Bank of England to consider interest rate cuts. The UK labour market data sets the stage for upcoming economic reports, including inflation, GDP, and retail sales.
The data reflects a positive trend in the UK labor market, with a decrease in unemployment and an increase in employment. However, challenges remain, including slowing wage growth and a decline in job vacancies. Government officials are focused on supporting individuals into employment and improving the overall economic outlook.
Source
Photo credit www.theguardian.com
