UK unemployment reaches 40-year low

  • UK unemployment reaches 40-year low

UK unemployment reaches 40-year low

Job vacancies increased by 20,000 to a record high of 829,000 as the number of non-EU nationals working in the United Kingdom increased by 74,000 to 1.27 million.

There was little sign of overall wages stirring in the latest data - the rate slowed to a nine-month low of 2.4% between April and June - but the BoE sees a pickup toward 3.5%.

Figures published by the Office for National Statistics (ONS) showed the number of European Union nationals employed in the United Kingdom decreased by 86,000 in the year following June 2017 - the most dramatic fall since records began in 1997.

Upward pressure on settlements is expected to come from the public sector, where millions of workers will this year benefit from the easing of a cap on pay increases in place since 2010.

United Kingdom unemployment has fallen to 1.36 million people, 124,000 fewer than a year earlier.

Scottish business minister Jamie Hepburn said the figures were "welcome", adding: "Scotland's economy and jobs market remains strong despite the continued challenges facing our economy as a result of Brexit uncertainty".

Unemployment rate fell unexpectedly to its lowest since 1975 during the second quarter and productivity picked up, according to the latest data from Office for National Statistics.

There are 780,000 people in employment on "zero-hours contracts" in their main job, 104,000 fewer than for a year earlier.

It also said the number of people aged 16 to 64 who were not working, looking for work or available to work - what is known as "economically inactive" - increased by 77,000 from the first quarter of the year.

This has been partly attributed to confusion among migrant workers as to their employment rights after the United Kingdom leaves the EU.

United Kingdom unemployment hits fresh lowWages grow by 0.4%.

It means the number of European nationals in the United Kingdom now sits at 2.28 million.

The fall may also be included in the list of reasons of the British Central Bank (BoE) had raised interest rates earlier this month.

"Despite the further tightening of the labor market, earnings growth remained weak - indeed both total and regular earnings growth softened in the three months to June", said Howard Archer, chief economic adviser to the EY ITEM Club. Pay growth is anaemic at best.