Record unemployment in UK: 4%; the lowest for more than forty years

Lloyd Doyle
August 16, 2018

However, average earnings increased by 2.4 per cent in the year to June, down from 2.5 per cent the previous month and equal to the current the rate of inflation.

Scotland's unemployment rate dropped slightly to 4.2% in the three months between April and June.

The number of people in work continued to increase - up by 42,000 to 32.39 million while the claimant count nationally rose 6,200 last month to 906,100, nearly 108,000 more than a year ago.

"With employment up and unemployment down, it may appear that all is rosy, but the prolonged wage squeeze, low productivity growth and continued Brexit uncertainty would suggest that the recent growth in the jobs market can not be sustained much longer".

The number of Scots out of work has fallen and the jobless total across the United Kingdom reached a 40-year low, official figures today show.

The British unemployment rate shrugged off Brexit worries to reach a low not seen for 43 years, according to data released on Tuesday.

The jobless rate fell to 4pc in the three months to June, the Office for National Statistics said, down from 4.2pc in the previous three-month period.

Total annual wage growth slowed to a nine-month low of 2.4 per cent, below forecasts for it to hold at 2.5 per cent.

The number of workers on zero-hours contracts fell by 104,000 over the past year to 780,000, the first substantial fall since the ONS started tracking the figures in 2000.

Experts said that productivity - the output per hour worked - grew by 1.5 per cent year-on-year.

This is being made worse by Brexit uncertainty and a fall in workers from other European Union countries.

"Shortages are already hampering firms' ability to compete and create jobs, so it's vital that the United Kingdom pursues an open and controlled post-Brexit immigration policy", Matthew Percival, head of employment at the Confederation of British Industry, said. That's the biggest fall in 21 years.

The BoE raised the bank rate by 25 basis points to 0.75 percent at the beginning of August, only the second rate rise in over 11 years. Economists had expected the rate to remain at 4.2% level.

"Achieving sustained increases in wage growth remains a key challenge, with sluggish productivity, underemployment and the myriad of high upfront business costs weighing down on pay settlements", he said.

Other reports by Iphone Fresh

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