According to the report from the Office for National Statistics (ONS), the unemployment rate (for people aged 16 years and over) was estimated at 4.0% in June to August, below estimates of a year ago, and decreased in the latest quarter (-0.4%). Economists expected the unemployment rate to remain at 4.1%. The economic inactivity rate was estimated at 21.8% in June to August, below estimates of a year ago, and decreased in the latest quarter (-0.3%).
The ONS said that in August, payrolled employees decreased by 35,000 (-0.1%) compared to July, but rose by 165,000 (+0.5%) year-on-year. The claimant count increased in September by 27,900 on the month, to 1.797 million. Economists had expected an increase of 20,200 after an increase of 300 in August (revised from +23,700). Meanwhile, in July to September, the estimated number of vacancies decreased by 34,000 q/q, to 841,000. Vacancies decreased on the quarter for the 27th consecutive period but are still above pre-coronavirus pandemic levels.
The data also showed that from June to August, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 3.8% per annum (+4.1% in the previous three months) and 4.9% per annum (+5.1% in the previous three months). Economists also expected an increase by 3.8% and 4.9%, respectively. This total annual growth is affected by the NHS and civil service one-off payments made in June, July and August 2023. Adjusted for inflation, wage growth in real terms was 0.9% for total pay and 1.9% for regular pay.