UK unemployment rate at a seven-year low

UK unemployment has fallen to its’ lowest rate of 5.3% in the three months to September. It’s the lowest jobless rate since the second quarter of 2008, the Office for National Statistics (ONS) has said.

There are currently 31.21 million people in work, which is 177,000 more that for the previous quarter and 419,000 more than for the same period last year. The number of people out of work fell by 103,000 between July and September to 1.75 million. Nick Palmer, a statistician at the ONS, said: “These figures continue the recent strengthening trend in the labour market, with a new record high in the employment rate and the unemployment rate still at its lowest level since spring 2008.” However, the ONS has reported that total earnings of workers rose by 2.0% in September, which is down from 3.2% for the previous month, and was the weakest increase since February. Chief economist at research firm Markit, Chris Williamson, said: “The UK labour market continued to tighten in September, as unemployment fell more than expected and employment rose sharply. Pay growth remained surprisingly weak, however, despite further evidence of growing skill shortages, which normally leads to higher salaries. “Pay growth remains central to policymaking, and interest rates are likely to stay on hold for as the official data show pay growth remaining subdued. Today’s data therefore support the Bank’s current projections that there will be no need to raise interest rates until 2017 due to persistent low inflation.” The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with employment law solicitors in Guildford and across the country.