UK unemployment unexpectedly falls to 4.7% as job vacancies drop
UK unemployment unexpectedly fell to 4.7% in the three months to August, the Guardian and the BBC reported. Job vacancies dropped to 691,000, as small firms cut back on hiring. The figures are the last jobs snapshot before next week's budget.
Unemployment in the UK fell unexpectedly to 4.7% in the three months to August, from 4.9%, the Guardian and the BBC reported, citing the Office for National Statistics. The BBC reported that it was the lowest rate in more than a year.
Job vacancies fell by 21,000 to 691,000 in the three months to September, the Guardian and the BBC reported. The Guardian reported that it was the lowest level since 2021, during the Covid pandemic. The ONS said small firms cited labor costs as a key reason for scaling back hiring, the BBC reported, and the largest drop was in construction jobs.
The number of payrolled employees rose by 13,000 between August and September, to 30.3 million, the Guardian reported. The ONS's David Freeman said the labor market remained "broadly flat," with payroll numbers "starting to level off," the BBC reported.
Regular pay growth, excluding bonuses, rose to 3.7% from 3.6%, the Guardian reported. Taking inflation into account, wages grew 0.8% in real terms, the BBC reported. Pay growth remains above the 3.1% inflation rate, which concerns Bank of England policymakers, the Guardian reported.
Energy costs have risen since the Iran war began, and companies say higher National Insurance contributions and minimum wage increases have made hiring more expensive, the BBC reported. Unemployment for 16- to 24-year-olds was 15.6%, the BBC reported.
Work and Pensions Secretary Pat McFadden said the figures "show the resilience of our labour market," the BBC reported. Ashley Webb of Capital Economics called the fall in unemployment "unexpected" but said, "we still think hiring will stay subdued," the BBC reported. Louise Murphy of the Resolution Foundation said there may finally be "some green shoots," the BBC reported.
The figures are the last official look at the jobs market before the budget on October 28, the Guardian and the BBC reported.
What we know: UK unemployment fell to 4.7%, while vacancies dropped to 691,000.
What we don't: Whether hiring picks up, and what the October 28 budget will mean for employers' costs.
Where outlets agree The Guardian and the BBC report that UK unemployment unexpectedly fell to 4.7% in the three months to August while vacancies fell to 691,000.
Where they differ The outlets cited here report the same key facts so far.