View more on these topics

UK unemployment falls to 7.7%

UK unemployment fell to 7.7 per cent in the three months August though pay increases continue to be well below inflation.

Data from the Office for National Statistics shows unemployment is down 0.1 per cent compared to the previous three months.

There were 2.49 million unemployed people aged 16 and over, down 18,000 from March to May 2013 and down 40,000 from a year earlier.

ONS statistics show 29.87 million people were in employment aged 16 and over, up 155,000 from March to May 2013 and up 279,000 from a year earlier.

Despite more jobs being created total pay rose just 0.7 per cent compared with June to August 2012, well below inflation of 2.7 per cent over the same period.

In the previous three months total pay grew at an annual rate of 1.7 per cent.

Average weekly earnings for the private sector increased by 1.1 per cent but average weekly earnings for the public sector fell by 0.5 per cent, the first time a negative growth rate has been recorded since records began in 2001.

In August 2013 average weekly pay in the private sector was £473, lower than the public sector figure of £484.

Capital Economics predicts the unemployment rate will rise to 8 per cent next year and 8.1 per cent in 2015.

Bank of England governor Mark Carney says he will not increase interest rates until unemployment falls below 7 per cent, barring exceptional circumstances. 

Recommended

Neil-Woodford-and-successor-Mark-Barnett-700.png

Neil Woodford to leave Invesco

Invesco Perpetual star fund manager Neil Woodford is quitting to set up his own fund management business. Woodford, the country’s most popular UK equity income manager, will leave Invesco Perpetual on 29 April and hand over his £13.9bn Invesco Perpetual High Income and £10.6bn Invesco Perpetual Income funds to Mark Barnett, who has been part […]

Business-Handshake-Meeting-Deal-Low-Angular-700x450.jpg

Caerus finally completes Paradigm network acquisition

Caerus Capital Group has completed the acquisition of adviser network Paradigm Financial Advisers, a year after first announcing the deal.  The sale, which now has FCA approval, sees Caerus take full control of the PFA business.   Negotiations first began in October 2012 but the deal has been awaiting regulatory approval before formal completion. Paradigm’s management say […]

Pensions Dashboards around the World

Steve Webb’s latest policy paper British savers risk being left in the ‘slow lane’ unless the UK Government takes a more active role in ensuring the successful delivery of a Pensions Dashboard. The report, ‘Pensions Dashboards around the World’, coincided with a major conference that was held on Monday 16 May and brought together experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Only another 0.8% to go and then higher interest rates. Goody- goody.

    However I have a sneaking feeling that they will diddle the figures to keep unemployment above 7%.. After all we can’t have the poor darlings actually paying a going rate on their debt.

Leave a comment