The rate of UK unemployment has dropped to 4.1% this quarter, data from the Office for National Statistics (ONS) has revealed.
The official figures showed that the percentage of those out of work has fallen for the three months to the end of July from 4.4% the previous quarter.
However, pay growth continues to slow, with wages excluding bonuses increasing by 5.1% in the three months to July. The last time it dropped below this was in the quarter to June 2022, when it was 4.7%.
The ONS data also estimates that in June to August 2024, there were 857,000 job vacancies, down 42,000 on the quarter and 143,000 on the year. However, this is still 61,000 more than pre-Covid.
UK unemployment
UK unemployment rate dips while wage growth slows
Meanwhile, youth unemployment has soared to 13.3% – its highest level in three years.
Among 18-24-year-olds, the percentage out of work in the three months to July had last been as high in January 2021, amid Covid lockdowns.
Julia Turney, partner and head of platform and benefits at Barnett Waddingham, said: “The UK labour market is still grappling with ongoing issues. An ageing workforce and a large number of people disengaged or not participating in the workforce continue to contribute to productivity issues across the country.
“To meet the government’s ambitious objective of ‘rebuilding our country’ and strengthening the labour market, these issues must be tackled head-on. This means a focused effort on improving wellbeing within organisations nationwide, while also ensuring targeted government initiatives are in place to increase productivity and steer us back on course.
“Now is the time for both employers and policymakers to act —businesses must gain a deeper understanding of their people’s needs and invest in their retention. Meanwhile the government needs to implement meaningful reforms to ensure employees across all age groups feel supported.”
In July, the government announced the launch of Skills England, with the aim of boosting the nation’s skills and getting people back into work.
At the time. the Department for Education revealed that between 2017 and 2022 skills shortages in this country doubled to more than half a million, now accounting for 36% of job vacancies.
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