The UK unemployment rate has risen to 5.2% while wage growth has plummeted ahead of the Bank of England’s announcement on interest rates at lunchtime
The figures also show that 20.7% of UK adults between the ages of 16 and 64 are said to be economically inactive, meaning they aren’t in work and are not actively looking for work
“Average nominal wage growth has slowed to 3.8%, and is at its lowest since November 2020, ending a 48 month run of above 4% wage growth. Private sector wage growth is now at 3.3%, meaning many workers will be seeing little to no real improvement in their living standards as inflation remains above target at 3.0%.”says Ben Harrison, Director of the Work Foundation at Lancaster University
“Young people are being hit particularly hard. Around one in seven 18–24 year olds are now unemployed, with the rate at 14.5% representing a ten-year high. There are also 230,000 young people who have been out of work for six months or more, who could be eligible for the Government’s new Youth Jobs Grant. But to succeed, the scheme must deliver secure, sustainable jobs – otherwise it risks worsening physical and mental health and doing little to lift young people out of long-term reliance on the welfare system.”
