Out of work numbers are lowest in five decades

UNEMPLOYMENT has hit its lowest point for almost 50 years, in a glimmer of good news for Chancellor Kwasi Kwarteng.

But statisticians said the number of people dropping out of work entirely due to longterm sickness had reached a record high.

The Office for National Statistics said the unemployment rate fell to 3.5 per cent over the three months to August – down from 3.6 per cent and the lowest since February 1974.

The figures showed 377,681 more adults have become economically inactive because of long-term sickness since the start of the pandemic.

The number of UK workers on payrolls rose by 69,000 between August and September to 29.7 million.

Vacancies

David Freeman, ONS head of labour market and household statistics, said: “While the number of job vacancies remains high after its period of rapid growth, it has now dropped back a little, with a number of employers telling us they’ve reduced recruitment due to economic pressures.

“However, because unemployment is also down, there continues to be more vacancies than unemployed.”

Mr Kwarteng said: “Today’s statistics remind us that the fundamentals of the UK economy remain resilient.

“Our ambitious growth plan will drive sustainable long-term growth, meaning higher wages and better living standards for all.”

However, there were some signs in the statistics that the UK’s labour market is starting to cool as both employers and workers worry about the effects of inflation and rising borrowing costs.

The employment rate fell by 0.3 percentage points to 75.5 per cent in the three months to August, the first quarterly drop since Covid disruption eased, leaving it a full percentage point lower than before the pandemic.