The UK unemployment rate has hit its lowest level since 1974, but the drop was mainly due to a reduction in the workforce and there are other signs that the country’s job boom is wearing off, in yet another headache. the Bank of England.
The unemployment rate dropped to 3.6% in the three months to July, the Office of National Statistics said. Economists polled by Reuters had expected it to hold at 3.8%.
However, the slump was not a sign of health in the British economy, which is in danger of slipping into recession.
The number of people employed grew by 40,000, less than a third of the increase predicted in the Reuters poll.
“Now we’re starting to see signs that the job market is losing steam,” said Jack Kennedy, a British economist at global jobs website Indeed.
The economic inactivity rate — which measures the share of the population that is not working and not looking for work — rose 0.4 percentage points in the quarter to 21.7%, the highest since the three months to January 2017.
The ONS said the increase was driven by more people classified as long-term sick and fewer full-time students starting work than normal for the time of year.
At the same time, wage growth rose more than expected, reflecting a shortage of job seekers, although it still lags far behind inflation, which is expected to hit 10.2% in the 12 months through August, when figures are published on Wednesday. -fair.
The Bank of England is concerned that the tightening of the labor market will increase price pressures.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
