British unemployment fell to its lowest level since 1974 in the first quarter of the year, but rising inflation led to the biggest drop in real wages (excluding bonuses) since 2013, according to official figures.
Unemployment fell to 3.7% from 3.8%, lower than estimates for a fixed percentage, and the 1.257 million unemployed were less than the 1.295 million vacancies for the first time in history.
The Bank of England is watching the dynamics of the British labor market with suspicion, as it fears that wage growth is a key channel through which the current rise in inflation can be consolidated.
“Strong bonuses in some sectors, such as construction and especially the financial sector, mean that total earnings continue to rise faster than average prices, but the underlying regular profits are now falling sharply in real terms,” he said. Director of the Statistical Service.
Total wages in the first quarter of 2022 increased by 7% compared to the previous year, higher than the estimates for an increase of 5.4%.
Source: Capital
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