Britain’s jobless rate has come in at just 3.9%, lowest in over four decades, as wage growth keeps rising faster than inflation
- Breaking: UK unemployment lowest since 1975
- Nominal pay growth at 10-year-high of 3.5%
- …real pay growth rises to 1.5%
- Employment at record high; inactivity down
- Government: Economy strong, but Brexit deal needed
Here’s the BBC’s Dharshini David on the jobs report:
record number in work – may seem surprising given Brexit uncertainty BUT
1)hiring plans tend to lag considerably behind changes in activity
2)& consumer spending still pretty solid
3)firms reluctant to invest, may be using workers to fill that gap instead
Take-home pay is now growing at the fastest rate since the EU referendum of 2016, points out the Resolution Foundation.
That’s thanks to the jump in real wage growth to 1.5% per year, and means households are shaking off the slump in sterling after the Brexit vote (which drove up inflation, taking a big bite out of real income).
“Real wage growth has finally returned to pre-referendum levels, though the post-referendum pay slump has left us £12 a week poorer.
This mini pay recovery is encouraging, but it is likely to be tested in the coming months as inflation is expected to start rising again.
Almost three years to the month real pay growth is back at 1.5%. If we'd continued at this rate back in 2016 real average weekly wages would be back above pre-crisis peak now. Unfortunately we're not on course to get there now until after 2020 pic.twitter.com/bXAdJPzsLo