Unemployment falls, vacancies and payroll numbers hit more record highs and wages rise 3.8% – but not as much as spiking inflation
- Latest figures show unemployment falling and vacancies at a new record high
- Payroll numbers also at a fresh peak as the labour market recovers from Covid
- Wages not including bonuses rose by 3.8 per cent but that was below inflation
Unemployment has fallen and vacancies and payroll numbers hit more record highs as the UK labour market continues to recover.
Official figures show the jobless rate dipped 0.2 percentage points between November and January to 3.9 per cent.
Meanwhile, payroll numbers rose 275,000 in a month to reach 29.7million in February, and vacancies struck a new peak of 1,318,000.
Growth in average total pay – including bonuses – was 4.8 per cent in the quarter to January but regular pay increases were lower at 3.8 per cent.
Accounting for inflation that was equivalent to a one per cent fall in spending power.
Chancellor Rishi Sunak insisted the figures showed the UK was in a good position to weather the ‘current global challenges’.
Growth in average total pay – including bonuses – was 4.8 per cent in the quarter to January but regular pay increases were lower at 3.8 per cent. Accounting for inflation that was equivalent to a one per cent fall in spending power.
ONS chief economist Grant Fitzner said: ‘The labour market continues to recover from the effects of the pandemic, with the number of unemployed people falling below its pre-pandemic level for the first time and another strong rise in employees on payroll in February.
‘However, the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level.
‘We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.
‘Because bonuses have continued at high levels for some workers, total earnings growth just kept ahead of rising prices over the past year, though regular pay has dropped again in real terms.’
Mr Sunak said: ‘Thanks to the unprecedented economic support we’ve provided, we’ve now seen a year of falling unemployment and a stronger jobs market bounce back than so many predicted.
‘I am confident that our labour market is in a good position to deal with the current global challenges, with payrolled employee numbers above pre-pandemic levels in every nation and region and redundancies at record lows.
‘We know people are concerned about the rising cost of living so alongside continuing to help people find great jobs – we’re providing direct support worth more than £20billion this financial year and next.’
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