United Kingdom unemployment rate unexpectedly drops to lowest level since 1975

19 May, 2017, 15:13 | Author: Leticia Walters
  • United Kingdom unemployment rate unexpectedly drops to lowest level since 1975

"However, alarm bells will be ringing for Britons with wages continuing to fall".

Latest figures have revealed that the United Kingdom unemployment rate has fallen to 4.6 per cent, the lowest in 42 years.

Alpesh Paleja, the CBI's principal economist, said: "Weakening productivity and slower pay growth, coupled with rising inflation, will continue to squeeze real household earnings".

Employment has increased by 122,000 to nearly 32 million, the highest since records began in 1971, reported the Office for National Statistics (ONS).

Capital Economics UK economist Paul Hollingsworth says while modest nominal wage growth may not be enough to keep up with inflation this year, which he expects to peak just over 3 per cent, next year is a different story.

Scotland recorded an unemployment rate of 4.4% in the first three months of this year - lower than the rest of the United Kingdom as whole - with the statistics showing employment in the country increased by 5,000.

While the statistics showed employment at a record high, a combination of stagnant wage growth and Tuesday's higher than expected inflation figure suggests United Kingdom households will be hit with a fall in their real income.

The results mean that pay, adjusted for inflation, fell by 0.2 per cent at the start of the year, the first fall since the end of 2014.

Analysis showed that the Urban index rose by 17.62 per cent (year-on-year) in April from 18.27 per cent recorded in March, and the Rural index increased by 16.69 per cent in April from 16.47 per cent in March.

"An astonishing rise in United Kingdom employment isn't enough to mask the fall in real wages", James Smith at ING told the Financial Times. The key measure of wage growth, which excludes bonuses, came in at 2.1 per cent. The latest figures on earnings growth are due out later this week.

Data released on Tuesday showed consumer price inflation picked up speed in April to hit 2.7 per cent and many economists think it will reach 3 per cent soon. The number of unemployed dropped 53,000 to 1.54 million people while of those employed rose 122,000 to a record 31.9 million. "It's also hard to ignore the fact that wages are now growing at a noticeably slower pace than prices".

Some experts though are not so optimistic on the future wage growth.

Recommended:

  • Japan's Cabinet OKs bill to let Emperor Akihito abdicate

    Japan's Cabinet OKs bill to let Emperor Akihito abdicate

    After Crown Prince Naruhito ascends the throne, his younger brother Prince Akishino, 51, will be the next in line to the throne. The bill is one-off legislation that would allow only Akihito to step down, with no provisions for future emperors.

    Attorney General Jeff Sessions Orders Tougher Sentences For Drug Defendants

    I know because I was a victim of the Rockefeller Drug Laws which mandated mandatory minimum sentencing . This is why we are so grateful to have an attorney general who rejects such cynical behavior.
    DaFont hack: Popular font sharing site's entire database of registered users exposed

    DaFont hack: Popular font sharing site's entire database of registered users exposed

    The marketplace link, which was being used to sell the data on the dark web, is no longer available, says Zomato. Lucideus said Zomato is following a good practice of hashing the passwords before storing it in its database.
  • United States  summons Turkey envoy for embassy brawl

    United States summons Turkey envoy for embassy brawl

    Video shows Erdogan supporters and bodyguards flooding through the police line and beating protesters on American soil. Cavusoglu said Thursday that the Trump administration "did not show any reaction" to the Turkish warning.
    Celtics follow euphoria of winning lottery with dud on court

    Celtics follow euphoria of winning lottery with dud on court

    Despite statistically getting the most likely outcome, Tuesday night was not a good night for the Phoenix Suns and their fans. The first No. 1 pick of the lottery era was shrouded in conspiracy theories of a frozen or bent envelope and NY bias.
    FM: US understands Turkey's position against Syrian Kurds

    FM: US understands Turkey's position against Syrian Kurds

    Last year, Turkish security officials manhandled several journalists at a Washington think tank where Erdogan was set to speak. Erdogan's speech on Thursday was his first public speech since returning from a trip to meet U.S.
  • BT stream Man Utd vs Ajax Europa League final for free

    BT stream Man Utd vs Ajax Europa League final for free

    I have a replica of the Champions League, I have a replica of the Premier League [trophy], La Liga, all those things I was lucky enough to win.

    Companies Victimized By WannaCry Ransomware Could Be Sued For Negligence

    By Monday afternoon, it the ransomware had targeted around 200,000 organisations in 150 countries. Those who use Bkav Pro or Bkav Endpoint can operate directly because Tool automatically protect.

    Trump to join Pence in disclosing 2016 financial information

    Case in point: on the day of his inauguration, Trump notified the FEC that he qualifies as a candidate for the 2020 election. President Obama broke new ground when he set up a nonprofit organization and transferred excess campaign funds to it.
  • Turner injures right hamstring, Dodgers beat Marlins 7-2

    Turner injures right hamstring, Dodgers beat Marlins 7-2

    Because the 91-mph fastball from Edinson Volquez (0-6) hit him in his non-throwing arm, Ryu was able to remain in the game. The Marlins were outscored 22-4 in the three games against Houston, getting blanked 3-0 in the series finale on Wednesday.
    Trump Lets Russian Press Into Oval Office, Not American Press

    Trump Lets Russian Press Into Oval Office, Not American Press

    Kremlin spokesman Dmitry Peskov said Russian Federation hoped that Trump's move would not affect ties with the United States. Russian President Vladimir Putin "has a few times announced his readiness for such meetings [with U.S.
    Sweden drops rape probe against Julian Assange

    Sweden drops rape probe against Julian Assange

    It is not known if USA officials are seeking Assange's arrest because of a possible sealed indictment. Assange has been sheltering in the Ecuadorian embassy in London since 2012 to avoid extradition.


Popular

Google makes Kotlin a first-class language for writing Android apps
This move is also an indication that Google might get involved in pushing Kotlin forward, which is good news for the language. Google has announced that it is adding Kotlin as a first class language for writing Android apps.

Australian banks lick wounds after tax hit
Morrison on budget night finally buried the $13 billion in so-called "zombie" savings previously blocked by the Senate. The Medicare Guarantee Fund will be more than the Government demonstrating a commitment to the health scheme.

Israelis on edge before Trump visit
This information can be useful to Western allies, who have experienced attacks by Islamic extremists as well. Trump visits Israel on Monday, after starting his trip to the region in Saudi Arabia on Saturday.

Twitter goes berserk after Donald Trump Jr. appears to confirm Comey memo
The requests by USA intelligence officials cast doubt on the assertion by the president's aides that the sharing was appropriate. Earlier this week, Green released a statement claiming the president "had committed an impeachable act and must be charged".

North Korea's Missile Program Is Progressing Faster Than Expected: South Korea
The missile flew 787 kilometres on a trajectory reaching an altitude of 2,111.5 kilometres, the North's KCNA news agency said. The ruler also pledged further missile tests and nuclear detonations, despite repeated warnings by President Trump.