4.3%: United Kingdom unemployment falls to 42-year low


Scotland's unemployment rate has fallen to 3.8%, the lowest of the United Kingdom nations, official figures show.

"Both the United Kingdom and Scottish Governments need to focus on putting money back in the pocket of workers, and the wider picture for the economy looks bleak if we continue downwards in this low pay, low growth, high debt economy".

When the impact of inflation is factored in, real weekly wages fell by 0.4%, both including and excluding bonuses, compared with a year earlier.

The number of people in work hit an all-time high of 32.13 million, up by 181,000, between May and July.

The U.K. currency also reacted to Wednesday's economy figures and fell back below $1.33.

United Kingdom earnings growth continues to lag well below inflation despite the unemployment rate falling to a new record low.

'In particular, the number of people aged 16 to 64 not in the labour force because they are looking after family or home is the lowest since records began, at less than 2.1million.

The unions of prison officers threatened industrial action dismissing the pay rises announced.

"Despite Brexit uncertainties and slower growth, the United Kingdom continues to generate ever lower unemployment and ever more jobs".

Damian Hinds, the Minister for Employment, said the latest figures underlined the resilience of the United Kingdom economy but he admitted there was more work to be done.

The September meeting of the Monetary Policy Committee concludes at 12:00 pm Wednesday and so the latest labour market data could hold sway over the tone of Thursday's monetary policy statement.

It appears the markets agree with that sentiment, as the British pound sank below $1.33 versus the dollar in the wake of the disappointing earnings data.

"And with inflation reaching 2.9% in August, the squeeze on households' real incomes probably intensified".

He said: "While the continued strength of employment will be welcomed by the MPC, the continued absence of a pick-up in wage growth is likely to keep the doves in the majority".

For analysts, all eyes were on tomorrow's Bank of England interest rate decision.



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