Britain’s employment rate has hit 75.4%, the highest since records began in 1971, as economists predict the end of the pay squeeze.
According to official figures from the Labour Force Survey, published today, the number of people in work has increased. There are now 32.26 million people in work, 427,000 more than a year ago. The number of unemployed people has decreased: it’s dropped by 136,000 over the last year, and now stands at 1.42 million.
The figures show that the employment rate (the proportion of people aged from 16 to 64 years who were in work) was 75.4%, higher than for a year earlier (74.6%) and the highest since comparable records began in 1971.
There were 1.42 million unemployed people (people not in work but seeking and available to work), 16,000 fewer than for September to November 2017 and 136,000 fewer than for a year earlier.
The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.2%, down from 4.7% for a year earlier and the lowest since 1975. Britain’s unemployment rate has hit a new 42-year low of just 4.2%, as more people find jobs.
Wage growth
Latest estimates show that average weekly earnings for employees in Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.8%, both excluding and including bonuses, compared with a year earlier. However, when you adjust the figures for price inflation, average weekly earnings for employees in Britain in real terms increased by 0.2% excluding bonuses, and by 0.1% including bonuses, compared with a year earlier.
Working hours
People working full-time worked, on average, 37.2 hours per week in their main job, unchanged compared with September to November 2017 but fewer than for a year earlier, according to the figures.
Part time workers on the other hand, worked, on average, 16.2 hours per week in their main job, slightly more than for September to November 2017 but slightly fewer than for a year earlier.
While economists predict that the wage squeeze is coming to an end, financial analysts warn there could soon be an interest rate hike. Think tank The Resolution Foundation, meanwhile, points out that although wage growth is very positive, people are still poorer than before the crisis.
However, pay is still a long way from its pre-crisis peak. Average earnings still £14 a week lower than in 2008 pic.twitter.com/WapZhK9WsM
— ResolutionFoundation (@resfoundation) April 17, 2018
Unions warn that pay growth is still weak.
This is nice to see, but the bigger picture doesn’t look so good.
Real wages remain far below where they were before the recession. The average working person is still being paid £14 per week less than they were in 2008. pic.twitter.com/q4fnwAYQfQ
— TUC Economics (@TUCeconomics) April 17, 2018