RECORD EMPLOYMENT BUT WAGES STALL

BY TRICIA PHILLIPS UK unemployment has fallen to its lowest level for 44 years, at 3.8 per cent in the three months to October, official figures reveal.

The number of people claiming unemployment benefit dropped by 13,000 to 1.28millon over this period, while the number of unemployed women has hit a record low of 3.5 per cent, according to the Office for National Statistics.

The increase in women’s employment is partly due to changes to their state pension age, which is now the same as men at age 66, rising to 67 and 68 for anyone born after April 6, 1978.

Meanwhile, the number of people in work increased to an all-time high of 76.2 per cent, up 24,000 to 32.8million.

But this comes as wage growth has stalled and the number of job vacancies has shrunk. And more people were also deemed economically inactive over the three months, up 19,000 to 8.61million.

David Freeman, head of labour market and households at the ONS said: “While the estimate of the employment rate nudged up in the most recent quarter, the longer-term picture has seen it broadly flat over the last few quarters. Pay is still increasing, in real terms, but its growth rate has slowed in the last few months.”

Average pay increased by 3.2 per cent in the quarter, as it slowed from 3.6 per cent the previous month. This was driven by a growth rate of just 2.4 per cent in October, as the biggest monthly slump in bonus payments for more than five years was reported.

The figures also reveal job vacancies decreased by 20,000 to 794,000 – the 10th consecutive month they have fallen below 800,000. It’s the first time this has happened in more than five years.