Unemployment Drops Below Pre-Pandemic Levels, Inflation Wipes Out Pay Rises mdi-fullscreen

New figures from the ONS show unemployment fell to 3.9% between November and January, the lowest since January 2020, and again beyond economists’ expectations. That’s a fall of 0.2% from the last quarter of 2021, with 1.34 million people recorded as unemployed for the three months to January. And despite the wave of panic from Omicron…

Don’t get too happy: while job vacancies are at a record high, wages failed to keep up with the rapidly rising cost of living: salaries grew by 3.8%, while inflation pushed prices up by 5.5% in the same period. Don’t expect those numbers to improve soon.

Speaking this morning, ONS chief economist Grant Fitzner said:

“…the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level. We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.”

On wage growth, Fitzner added “The issue is not that pay growth is weak, it’s that prices are running even higher”…

mdi-tag-outline Data Guido Office for National Statistics Unemployment
mdi-timer March 15 2022 @ 09:09 mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer
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