Unemployment rate dips to 4.7% while earnings growth rises to 3.7% one week before the Budget
The UK unemployment rate fell to 4.7% in the three months to August, its lowest level in more than a year, while regular wage growth strengthened. The figures offer a mixed picture of the labour market just over a week before the Budget: unemployment eased, but vacancies continued to decline.
The Office for National Statistics said regular earnings rose by 3.7% year on year, or 0.8% after inflation, while vacancies fell by 21,000 to 691,000, their lowest level in five years. Payroll employment was estimated to have risen by about 13,000 between August and September. The ONS said the latest fall in vacancies was concentrated mainly among smaller businesses, which cited higher labour costs.
- Unemployment fell to 4.7%, the lowest rate in over a year.
- Regular wage growth rose to 3.7%.
- Vacancies dropped to a five-year low of 691,000.
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The Office for National Statistics measures employment, pay and job vacancies across the UK. Unemployment counts people who are available for work and actively seeking a job; earnings growth shows how pay is changing, while vacancies indicate how many jobs employers are trying to fill.
These measures can move in different directions: unemployment may fall even as employers advertise fewer jobs. The figures matter to workers and businesses, and are among the economic information the government considers when preparing the Budget.