You are here: Home - Saving & Banking - News -

UK records largest annual fall in unemployment since 1988

0
Written by:
17/09/2014
Unemployment in the UK fell by 146,000 to 2.02 million in the three months to July, according to the Office for National Statistics (ONS).
UK records largest annual fall in unemployment since 1988

This figure is 468,000 less than one year ago, representing the largest annual fall in unemployment since 1988.

The unemployment rate now stands at 6.2 per cent, the lowest since late 2008.

Average pay including bonuses for the quarter was 0.6 per cent higher than a year earlier. Pay excluding bonuses grew by 0.7 per cent.

Ben Brettell, senior economist at Hargreaves Lansdown, said: “The lack of wage growth is the thorn in the side of an otherwise fairly robust recovrey. Productivity – or lack of it – is the key to understanding this problem: weakness in wage growth reflects very subdued productivity growth, which has been hamstrung by a lack of capital investment.

“Wage increases which are not backed up by increased productivity simply result in price inflation and therefore no real wage growth; over the long term improvements in productivity are the only source of improving living standards.”

According to Brettell the Bank of England is under no pressure to raise interest rates following today’s wage growth figures. 

He explained: “With consumer price index inflation at a five-year low, and set to remain signficantly below target well into 2015, I still beleive the first move won’t come until after next years election.” 

Tag Box

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FTSE 100: This morning’s risers and fallers

UK stocks edged higher on Wednesday morning after a positive session on Wall Street, though gains were only modest ahead...

Close