Unemployment in the UK fell unexpectedly in the three months to August, to 4.7% from 4.9%. The Office for National Statistics figures, which provide a backdrop to the budget on 28 October, also showed that the number of payrolled employees rose by 13,000 between August and September, to 30.3m. However, the number of job vacancies fell by 21,000 to 691,000 in the three months to September, the lowest since 2021 during the Covid pandemic.
Economists had expected the unemployment rate to rise to 5%. Average wage growth, including bonuses, has fallen to 3.7% from 3.9%. Stripping out bonuses, average pay growth rose to 3.7% from 3.6%.
Average pay growth remains above the 3.1% headline rate of inflation, which is of concern to Bank of England interest rate setters, who fear higher-than-expected inflation will translate into higher wage awards, fuelling future prices rises recorded by the consumer prices index (CPI).
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