UK unemployment levels remain at 11-year low at 4.8 percent, according to figures released by the Office of National Statistics (ONS).
According to the data, UK unemployment levels fell by 7,000 in the three months to December-end totaling 1.6 million. Conversely, an additional 37,000 were now placed in work across the period, with 31.84 million people recorded as employed.
“Continued moderate growth in employment has led to a new high in the total employment rate, while the rate for women has reached 70% for the first time on record,” commented David Freeman, a senior statistician for the ONS.
“Overall, the labour market appears to be edging towards full capacity,” he continued.
However, the data also revealed that wage growth had continued to slow and were in fact weaker than anticipated. Average pre-bonus earnings rose by 2.6 percent in the previous quarter, a decrease from 2.7 percent a month previously. When bonuses were factored wages rose by 2.6 percent compared to the previous recorded 2.8 percent.
Stagnating wages remain particularly concerning within the context of growing levels of inflation across the U.K. Last month, the ONS recorded that inflation had reached 1.8 percent an increase from a rate of 1.6 percent in December, in part driven by a rise in fuel prices. In addition, many British businesses have already concluded that they intend to raise prices for 2017 in order to cope with higher export costs as a result of continuing Brexit negotiations putting further strains upon living costs.
Moreover, figures revealed that UK nationals now in employment had increased by 70,000 to 28.44 million. Conversely, non-UK nationals now make up 10.9 percent of workforce increasing by 233,000 to 3.48 million. A key concern expressed during the course of the run up to the June referendum was a concern over rising levels of immigration and the strain this was having upon employment. Nevertheless, the ONS urged for caution with respect to the figures.
The independent governmental data department commented:
“The data on non-UK nationals and non-UK born workers is not seasonally adjusted, so the small drop in the number of workers born in other EU countries, and small rise in the number of non-EU-born workers should be treated with caution. These figures may be affected by seasonal patterns in employment.
“The first migration figures that include a post-referendum period will be published on 23 February, when ONS will release migration statistics for the year ended September 2016.”
The Department of Work and Pensions, headed by Damian Green MP, were quick to publicize the figures on various social media platforms, welcoming the new record set for UK unemployment figures.
The Department tweeted as follows:
Employment is at a record rate of 74.6% with a record 31.84 million now in work. Read the news release here https://t.co/8N5CfPM3if pic.twitter.com/A5NqX0trOv
— DWP Press Office (@dwppressoffice) February 15, 2017