Unemployment is at a seven-year low – but, of course, there’s a downside

Here’s a graph to prove it

There are now just 1.71 million people out of work in the UK, which is a seven-year low.

The unemployment rate has fallen to pre-recession levels of 5.2%, with youth unemployment also declining.

However, it seems wages are growing much slower than in previous months.

Year on year for the three months to October, total pay increased by 2.4% compared with 3% in the previous three months.

Meanwhile, growth in pay without bonuses (regular pay) is down 0.5% to 2%.

Average earnings growth

Michael Martins, economic analyst at the Institute of Directors, said: “Yet again, these latest jobs figures make for welcome reading. The facts are impressive, and, given the turbulence which is affecting many parts of the world, worth repeating.

“In nearly every aspect, the labour market is tightening. The employment rate is at its highest ever level, the unemployment rate is down to its lowest since well before the crash at 5.2%, and youth unemployment – always a tricky problem to solve – continues to fall impressively. All of this indicates we are closing in on full employment.”

 

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Readers' comments (1)

  • Why is a slow increase in pay a bad thing?
    As a famous Labour politician said
    "One man's wage increase is another man's price increase." - Harold Wilson

    Please excuse the gender bias of Harold's day!


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