Reaching its lowest since 2008, UK unemployment rate falls to 6.4 percent.
Reaching a six-year-low, United Kingdom’s unemployment rate falls to 6.4 percent ending June this year.
According to the Office for National Statistics (ONS), the number of unemployed dropped by 132,000 to 2.08 million people. However, average wages, excluding bonuses, rose by 0.6 percent in the year till June, which has been the slowest rise since 2001.
Inclusive of bonuses, wages fell 0.2 percent, making it the first fall since 2009.
The organization also stated that deferred bonus payments were responsible for average wage rises, since the top rate of tax was shelved from 50p to 45p last year. This seems to have shaken the year-on-year comparisons.
As per the Bank of England (BoE), low average inflation is an issue of increasing concern for financial policymakers and will most likely affect interest rate decision timings.
Just last week, BoE had halved its average wage growth forecast, pegging the expected average salary rise to 1.25 percent this year.
Low average wage rises are usually an indication of the fact that the country’s economy is under performing due to laxity investing in business, manpower, technology or machinery.
The number of unemployed youth too has fallen in the second quarter this year by 102,000 to 767,000, which is the biggest fall since 1992.