UK unemployment falls, wages growth hits two-year low | UK unemployment and employment statistics

The UK jobs market defied predictions of a further weakening in June, with official figures showing unemployment fell but wages growth slowed to its lowest level in two years.

The unemployment rate unexpectedly fell from 4.4% to 4.2% in the three months to June, according to the Office for National Statistics (ONS).

However, wage growth excluding bonuses was 5.4% year-on-year in the three months to June, down from 5.7% in the previous three months and the slowest pace since 5.2% in the year to July 2022.

Taking inflation into account, wages rose 1.6 percent, meaning many workers will see their standard of living continue to improve.

The vacancy rate also declined, further demonstrating that the job market is returning to pre-pandemic levels.

Analysts were divided over how the figure might affect the Bank of England's interest rate decision when policymakers meet next month.

The National Institute of Economics and Social Research said that even though wages have fallen, rising wages could lead to higher inflation and require central banks to keep interest rates high for a long period of time.

The report said that continued strong wages growth has raised concerns that inflation could pick up, which could make the Bank of England cautious about further rate cuts.

Consultancy Capital Economics says the downward trend in wages growth is enough to increase the chances that the Bank of England will cut interest rates twice this year by a quarter of a percentage point, from 5% to 4.5%.

Traders reacted positively to the figures, with the pound up about half a cent, or 0.33%, against the dollar on Tuesday, reaching $1.2809, its highest level since August 5.

The growth rate for total pay, including bonuses, fell to a much lower 4.5% from 5.7% after a survey of employers found that many sectors were reluctant to hire staff. However, the data was distorted by a one-off bonus paid to NHS staff in June 2023.

The inactive population remains high at 9.41 million, an increase of 350,000 from 2023, or 22.2% of the working-age population, as many people report that they are unable to work due to poor health.

Julia Turney, partner at consultancy Barnett Waddingham, said: “The workforce we are dealing with today is older, more remote and more mentally ill than ever before.

Skip newsletter promotions

Join our business today

Get ready for your business day. Get all the business news and analysis you need every morning.

Privacy Notice: Our newsletter may contain information about charities, online advertising, and externally funded content. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

After the newsletter promotion

In fact, earlier this year the British Mental Health Association reported that one in nine British adults experienced significant stress last year and took time off work because of it.

Chancellor Rachel Reeves is under pressure to increase funding for mental health services to help people get back to work when she announces her budget later this year.

She said: Today’s figures show that more needs to be done to support people to get into work, because everyone who can work should be working.

This will be included in the Budget later this year, which will see us make tough decisions on spending, welfare and taxation to rebuild Britain by fixing the foundations of our economy and making every part of our country a better place to live.

Reeves is scheduled to release his first budget proposal on October 30.

Wage growth in the financial and business services industry was higher than in other industries, at 6.2 percent per year.

The ONS said: The construction sector had the smallest annual full-time wage growth of any sector, at 3.5%. Manufacturing had the largest wage growth, at 6.7%, including bonuses, in April-June 2024.

Sources 1/ https://Google.com/ 2/ https://www.theguardian.com/business/article/2024/aug/13/uk-unemployment-falls-wages-growth-inflation The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos