...By Henry George for TDPel Media.
Official figures have shown that the UK’s unemployment rate rose, and vacancies fell, for the ninth consecutive month, suggesting that the uncertain economic outlook is taking its toll on the country’s jobs market.
According to the Office for National Statistics (ONS), the unemployment rate rose to 3.8% in the three months to February, up from 3.7% in the previous quarter, which is higher than most economists had expected.
Furthermore, the figures also revealed a fall in vacancies by 47,000 to 1.1 million in the three months to March, reflecting “uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment.”
Rise in Employment but Decrease in Wages
Despite the rise in the employment rate, to 75.8% in the three months to February from 75.7% in the previous quarter, the data shows that wage growth continues to be outstripped by soaring costs.
Total pay, including bonuses, fell by 4.1% when Consumer Prices Index inflation is taken into account, even though earnings rose by 5.9%, according to the ONS.
Long-Term Sick Record High
The ONS has revealed that the number of people who are long-term sick among those who are ‘economically inactive’ rose to a new record high.
Meanwhile, although job vacancies have fallen again, they remain at very high levels, and pay continues to grow more slowly than prices, with earnings still falling in real terms.
The Chancellor, Jeremy Hunt, said that while unemployment remains close to historic lows, rising prices continue to eat into pay cheques, which is why halving inflation this year is one of the top economic priorities.
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