This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2019/may/14/uk-wage-growth-stalls-despite-record-employment
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK wage growth stalls despite record employment | UK wage growth stalls despite record employment |
| (about 3 hours later) | |
| Wage growth has slowed in the UK to put a squeeze on living standards despite unemployment falling to its lowest level for more than 40 years. | Wage growth has slowed in the UK to put a squeeze on living standards despite unemployment falling to its lowest level for more than 40 years. |
| The fall in pay growth to 3.3% on the year in the three months to March, from 3.5% in the three months to February, also came as the buoyant labour market recorded a rise in employment to a new high of 32.7 million. | The fall in pay growth to 3.3% on the year in the three months to March, from 3.5% in the three months to February, also came as the buoyant labour market recorded a rise in employment to a new high of 32.7 million. |
| 'You can’t really win': 4m Britons in poverty despite having jobs | |
| The Office for National Statistics said the growing number of vacancies, together with the falling level of unemployment, indicated the jobs market was continuing to tighten. The jobless rate fell from 3.9% to a record 3.8%, the lowest since 1974. | The Office for National Statistics said the growing number of vacancies, together with the falling level of unemployment, indicated the jobs market was continuing to tighten. The jobless rate fell from 3.9% to a record 3.8%, the lowest since 1974. |
| However, analysts said this trend had not driven employers to increase wages to levels seen before the financial crisis. | However, analysts said this trend had not driven employers to increase wages to levels seen before the financial crisis. |
| Mike Jakeman, a senior economist at PwC, said: “It is possible to see the shadow of Brexit in some of these figures. March was the month when Brexit anxiety was at its most acute, and it might have been the case that firms were more reticent to offer higher wages and advertise new positions in these weeks.” | Mike Jakeman, a senior economist at PwC, said: “It is possible to see the shadow of Brexit in some of these figures. March was the month when Brexit anxiety was at its most acute, and it might have been the case that firms were more reticent to offer higher wages and advertise new positions in these weeks.” |
| After several months of rising wage growth, the recent slowdown could further strain household budgets amid Bank of England forecasts of an increase in shop prices this year. | After several months of rising wage growth, the recent slowdown could further strain household budgets amid Bank of England forecasts of an increase in shop prices this year. |
| Inflation has steadied in recent months at 1.8%, but is expected to rise above the central bank’s target of 2%. The ONS put the inflation-adjusted rate of wage growth at 1.3% | Inflation has steadied in recent months at 1.8%, but is expected to rise above the central bank’s target of 2%. The ONS put the inflation-adjusted rate of wage growth at 1.3% |
| Brexit-related uncertainty was blamed for a rise in self-employment, which returned to its record high of 15.1% of all jobs, last seen in 2017. | Brexit-related uncertainty was blamed for a rise in self-employment, which returned to its record high of 15.1% of all jobs, last seen in 2017. |
| The unemployment rate for men fell by 0.2 percentage points to 3.9% while the rate for women dropped by 0.1 percentage points to reach a new low of 3.7%. | The unemployment rate for men fell by 0.2 percentage points to 3.9% while the rate for women dropped by 0.1 percentage points to reach a new low of 3.7%. |
| Much of the tumbling rate of female unemployment is down to tougher welfare rules that push women with young children back into the labour market. Pension rule changes that force women nearing retirement to work longer have also had an impact. | Much of the tumbling rate of female unemployment is down to tougher welfare rules that push women with young children back into the labour market. Pension rule changes that force women nearing retirement to work longer have also had an impact. |
| This trend is also borne out in the number of people who were economically inactive, which fell by 23,000 to 8.61 million and cut the inactivity rate by 0.1 percentage points to 20.8%. | This trend is also borne out in the number of people who were economically inactive, which fell by 23,000 to 8.61 million and cut the inactivity rate by 0.1 percentage points to 20.8%. |
| Vacancies have fallen back in recent months from a record high, but they remain elevated at 850,000 across all sectors. | Vacancies have fallen back in recent months from a record high, but they remain elevated at 850,000 across all sectors. |
| The sectors with vacancies greater than 60,000 were: | The sectors with vacancies greater than 60,000 were: |
| Wholesale and retail trade, repair of motor vehicles and motor cycles (139,000). | Wholesale and retail trade, repair of motor vehicles and motor cycles (139,000). |
| Human health and social work activities (134,000). | Human health and social work activities (134,000). |
| Accommodation and food ( 92,000). | Accommodation and food ( 92,000). |
| Professional, scientific and technical activities (80,000). | Professional, scientific and technical activities (80,000). |
| Manufacturing (61,000). | Manufacturing (61,000). |
| Wholesale and retail trade, repair of motor vehicles and motor cycles (139,000). | Wholesale and retail trade, repair of motor vehicles and motor cycles (139,000). |
| Human health and social work activities (134,000). | Human health and social work activities (134,000). |
| Accommodation and food ( 92,000). | Accommodation and food ( 92,000). |
| Professional, scientific and technical activities (80,000). | Professional, scientific and technical activities (80,000). |
| Manufacturing (61,000). | Manufacturing (61,000). |
| The employment minister, Alok Sharma, said: “Maintaining our record employment rate with unemployment falling again to just 3.8%, its lowest rate since 1974, once again shows the success of our balanced approach to managing the economy. | The employment minister, Alok Sharma, said: “Maintaining our record employment rate with unemployment falling again to just 3.8%, its lowest rate since 1974, once again shows the success of our balanced approach to managing the economy. |
| “Rising wages and booming higher-skilled employment means better prospects for thousands of families, and with youth unemployment halving since 2010, we are creating opportunities for all generations.” | “Rising wages and booming higher-skilled employment means better prospects for thousands of families, and with youth unemployment halving since 2010, we are creating opportunities for all generations.” |
| Economic growth (GDP) | Economic growth (GDP) |
| UK unemployment and employment statistics | UK unemployment and employment statistics |
| Economic policy | Economic policy |
| Economic recovery | Economic recovery |
| Economics | Economics |
| Financial crisis | Financial crisis |
| Inflation | Inflation |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |