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15.10.2024

UK unemployment rate fell slightly in August

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.

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