UK Unemployment Rate Falls to New 42-Year Low


UK unemployment rate dropped to a fresh 42-year low of 4.4 percent in the three months to June of 2017, beating market expectations of 4.5 percent. The employment rate rose to an all-time high of 75.1 percent as the number of people in work rose by 125 thousand.

There were 1.48 million unemployed people, 57,000 fewer than for January to March 2017 and 157,000 fewer than for a year earlier. The unemployment rate was 4.4 percent, down from 4.9 percent for a year earlier and the lowest since 1975.

There were 32.07 million people in work, 125,000 more than for January to March 2017 and 338,000 more than for a year earlier. The employment rate was 75.1 percent, the highest since comparable records began in 1971. There were 883,000 people (not seasonally adjusted) in employment on “zero-hours contracts” in their main job, 20,000 fewer than for a year earlier.

There were 8.77 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 64,000 fewer than for January to March 2017 and 90,000 fewer than for a year earlier. The inactivity rate was 21.3 percent, down from 21.6 percent for a year earlier and the lowest since comparable records began in 1971.

Latest estimates show that average weekly earnings in nominal terms (that is, not adjusted for price inflation) increased by 2.1 percent, both including and excluding bonuses, compared with a year earlier. In real terms (that is, adjusted for price inflation), average weekly earnings fell by 0.5 percent, both including and excluding bonuses, compared with a year earlier.

ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/16/2017 8:48:52 AM