- Unemployment up slightly to 3.9% and vacancies fall for 20th month in a row
- Wage growth cools to 6.1% but adjusted for inflation regular wages rose by 2%
- Economic inactivity rate for 16-64 year olds up to 21.8%
Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK jobs figures:
“Things are tightening up in the UK jobs market. Unemployment is up, vacancy numbers have slipped for the 20th month in a row and wage growth has cooled. The moves are small, hinting that the post-pandemic, post-Brexit boom has been cowed by a stagnant economy.
“The data has shifted the dial a bit on when money markets expect to see Bank of England rate setters finally pushing the button to bring interest rates down, but wage growth is still uncomfortably high and with a bit more money in people’s pockets thanks to cuts to NI and falling inflation the MPC is likely to want to watch what happens in the next couple of months before taking action.
“Especially with the elephant in the room, the huge number of people of working age who aren’t looking for a job. This includes those off on long-term sick leave, parents waiting for free childcare hours to kick in, and young people deciding that recession is not the time to start their working lives and choosing to stick with education in the hope that the economy will pick up by the time their course is over.
“That economic inactivity is keeping things tricky for employers hunting for skilled labour to help their business grow. Companies don’t want to keep putting their hands in the cookie jar in order to attract or keep talent when the jar is looking a little empty thanks to a couple of years of inflation fuelled price pressures.
“The chancellor’s last Budget was all about making work pay but the numbers show that money can only do so much and that the government and business need to work together to create a labour market that works for everyone.”
