You are here: Home - Household Bills - News -

UK jobless rate falls to 11-year low and wages edge up

Written by:
The UK unemployment rate has fallen to an 11-year low of 4.9%, while wages have grown by around 2% year-on-year.

Figures from the Office for National Statistics (ONS) show there were 1.65 million unemployed people for the period between March and May, 54,000 fewer than for the three months to February.

Average weekly earnings increased by 2.3% including bonuses and by 2.2% excluding bonuses compared with a year earlier.

However, these figures reflect pre-referendum conditions and some analysts suggest the unemployment rate could rise.

Ben Brettell, senior economist at Hargreaves Lansdown, said:Brexit has added a significant amount of uncertainty, and it is perfectly possible that firms will delay hiring decisions until they have greater confidence.

“In a survey of more than 1,000 business leaders conducted by the Institute of Directors, a quarter of respondents said they would freeze recruitment and 5% said they expected to lay workers off.

“As such the current unemployment rate of 4.9% could be the lowest we see for a while, but if the forecast downturn in the labour market does materialise, at least we start from a position of relative strength.”

David Morel, managing director of Tiger Recruitment, said: “For us, the most noticeable change in the jobs market since the vote to leave the EU has been a spike in demand for temporary staff.

“We fully expect the temp market to continue to be the biggest beneficiary of a lack of clarity surrounding the implications of Brexit.

“Permanent recruitment activity has by no means dried up, especially among bigger companies where demand for staff is more or less what it was pre-Brexit.

“But until there is a greater understanding among employers about the wider implications of Brexit, particularly concerning future free-trade agreements with the EU, we would expect the permanent jobs market to remain fairly static.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week