Britain’s working! Jobless rate now lowest in 44 years
uNEMPlOyMENT has fallen below 4 per cent for the first time in 44 years.
Driven by a rise in the number of older people and women in work, the jobless rate fell to 3.9 per cent in the three months to January – its lowest level since 1975.
The fall in unemployment – to just half the rate of 7.8 per cent in the eurozone – came as the number of people in work rose at the fastest pace for three years.
John Philpott, of the Jobs Economist consultancy, said: ‘Nobody seems to have told the labour market about the mood of Brexit-related economic uncertainty that has gripped the uK since the autumn.
‘These record-breaking jobs numbers seem extraordinary and suggest only a recession-inducing hard Brexit is likely to have a noticeably negative impact on the uK’s employment situation.’
Another 222,000 workers found jobs between November and January – more than 2,400 a day – pushing the employment rate to a record 76.1 per cent. The increase has been driven by a surge in over-50s taking up jobs with some choosing not to retire while others are forced to carry on working to make ends meet.
There are now a record 10.4million over-50s in work – up from eight million a decade ago.
The female employment rate has risen to a record 71.8 per cent, with 15.4million women now working. In a further boost to households, wages continue to rise, with pay growth of 3.4 per cent outstripping inflation of 1.8 per cent. The aver- age worker now earns £25,800, according to the figures from the Office for National Statistics.
The numbers make a mockery of claims by former chancellor George Osborne that 820,000 jobs would be lost if Britain voted to leave the European union. The ONS figures showed that 32.7million people are now in work, the highest figure ever.
An extra 222,000 joined the workforce in the three months to January, the biggest rise since the quarter to November 2015.
The growth was largely driven by full-time workers, who accounted for 152,000 of the new roles.
The female employment rate has risen to a record. These figures have partly been pushed up because the state pension age for women is being hiked from 60 to 65, meaning it is harder for older workers to give up.
This is part of the reason for a spike in the overall number of over-50s staying in their jobs. There are now 10.4million workers of this age, the highest figure on record, and a record 4.9million are women.
Experts believe that this increase cannot go on forever. Alastair Neame, of the economics think-tank Cebr, said: ‘A striking feature of recent labour market performance is that much of the increase in employment over the past five years has been driven by the over-50s.
‘While improving health and longevity as well as the changing nature of work mean working into later life is a more feasible prospect than it would have been in the 1970s there is a limit to the level of growth that is likely to be achieved.’
Employment minister Alok Sharma said: ‘Today’s employment figures are further evidence of the strong economy the Chancellor detailed in last week’s spring statement.’
‘Record-breaking numbers’