The rate of unemployment dropped to four per cent in the three month to August 2024, according to the latest figures from the Office for National Statistics (ONS).
This represents a boon for the UK economy as prior forecasts had estimated unemployment coming in at 4.1 per cent.
Based on the ONS’ latest report, the number of people claiming jobless benefits went by 27,900 in September.
In comparison, claims for jobless benefits from the Department for Work and Pensions (DWP) jumped 23,700 in August, surpassing the expected 20,200 figure.
Over the three months to August, regular pay, excluding bonuses, went up at an annual pace of 4.9 per cent.
Despite this signalling an easing in pay growth, employee wags continue to increase faster than inflation.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
Rachel Reeves is leading the charge to reform the economy
PA
Over the last quarter, the estimated number of vacancies in the UK fell by 34,000 to 841,000.
Vacancies plummeted on the quarter for the 27th consecutive period but remains higher than pre-Covid levels.
Despite unemployment falling at face value, analysts are warning that the job market is as “bleak as its ever been”.
Speaking to Newspage, experts broke down what Britons should gather from the latest ONS figures.
Kate Underwood, managing and HR Director at Kate Underwood HR and Training , explained: “As an HR consultant, I’m seeing growing concern among employers about the upcoming Budget, especially in light of the proposed Employment Rights Bill.
“Many small businesses are hesitant to make significant hiring decisions until they know what financial pressures they’ll be facing. The potential for increased statutory costs, like expanded sick pay and parental leave, alongside new regulations, could have a big impact on their ability to manage budgets effectively.
“Employers are understandably cautious, waiting to see if the Budget provides any relief or additional support to offset these increased obligations. With the combined weight of new employment regulations and financial uncertainty, many are taking a “wait-and-see” approach, putting recruitment plans on hold.
“The Government needs to carefully balance worker protections with practical support for businesses, or we risk stalling job growth at a critical time for the economy.”
THIS IS A BREAKING NEWS STORY..MORE TO FOLLOW