UK Jobless Rate Falls to Lowest since 1975


The unemployment rate in the UK fell to 4 percent in the three months to June 2018, the lowest level since the December 1974-February 1975 period and below market consensus of 4.2 percent. The number of unemployed declined by 65,000 from the January to March period while employment rose by 42,000. Still, annual wage growth eased to a nine-month low.

There were 1.36 million unemployed people, 65,000 fewer than for January to March 2018 and 124,000 fewer than for a year earlier. The unemployment rate was 4.0 percent; it has not been lower since December 1974 to February 1975.

There were 32.39 million people in work, 42,000 more than for January to March 2018 and 313,000 more than for a year earlier. The employment rate was 75.6 percent, unchanged compared with January to March 2018 but higher than for a year earlier (75.1 percent). There were 780,000 people in employment on “zero-hours contracts” in their main job, 104,000 fewer than for a year earlier.

There were 8.73 million people aged from 16 to 64 years who were economically inactive, 77,000 more than for January to March 2018 but 31,000 fewer than for a year earlier. The economic inactivity rate was 21.2 percent, higher than for January to March 2018 (21.0 percent) but slightly lower than for a year earlier (21.3 percent).

Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.7 percent excluding bonuses, and by 2.4 percent including bonuses, compared with a year earlier. Meanwhile, average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) increased by 0.4 percent excluding bonuses, and by 0.1 percent including bonuses, compared with a year earlier.

UK Jobless Rate Falls to Lowest since 1975


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/14/2018 8:47:16 AM