UK Unemployment Drops to Near 50-Year Low, Inflation Outpacing Wages

The latest figures from the Office for National Statistics (ONS) shows unemployment dropped to 3.7% in the first quarter of the year, the lowest figure since 1974, with the highest number of job vacancies on record at 1.3 million. For the first time ever, there are now more job vacancies than job seekers…

The figures still paint a mixed picture at best, though. The employment rate sits at 75.7%, 0.1% higher than last quarter, yet 0.9% lower than early 2020, just before the pandemic hit. Excluding bonuses, weekly total pay is also starting to seriously lag behind inflation, with a real terms fall of 1.2% this quarter. Don’t expect that figure to improve much next quarter either…

Half the dead tree press this morning splash with Bank of England Governor Andrew Bailey’s doom laden comments that he can’t control inflation, and the country will soon face “apocalyptic” food prices. Unemployment may be plummeting, yet there’s a recession looming around the corner…

mdi-timer 17 May 2022 @ 09:12 17 May 2022 @ 09:12 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Unemployment Rate Falls to 4.3% Despite End of Furlough

The UK’s unemployment rate fell to 4.3% in October – near pre-pandemic levels – despite the furlough scheme wrapping up at the end of September. The total number of jobs is now 235,000 higher than the pre-Covid level recorded in February 2020. Yet more job-timism…

According to ONS figures released this morning, the number of payrolled employees jumped by 160,000 between September and October, with very few employees losing their jobs or leaving the workforce. Job vacancies have also reached a record high…

The news has prompted fresh claims that the Bank of England is now more likely to raise interest rates to tame inflation, as had previously been expected earlier this month. Yesterday Governor Andrew Bailey claimed that unemployment rates looked “lower than our forecast would imply”, though didn’t confirm the move outright. The Bank will meet to discuss a potential change on 16the December. Guido’s old enough to remember the British Chamber of Commerce claiming one in five firms were planning job cuts ahead of the furlough tapering…

mdi-timer 16 November 2021 @ 08:51 16 Nov 2021 @ 08:51 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Bank of England Governor Throws Shade at Greensill

Bank of England Governor Andrew Bailey on Lex Greensill:

“Mr Greensill sometimes presents it [supply chain finance] as if he’s discovered the secrets of the universe. Certainly there was some innovation around it. There may well have been some useful innovation around it”

mdi-timer 24 May 2021 @ 16:21 24 May 2021 @ 16:21 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments