UK jobless rate falls to lowest level since 2008
It is interesting to reflect on the theme of “living working countryside” in the context of this article and the broken link between employment and housing in rural areas. Our next story suggests that whilst youth unemployment is growing the cost of housing in rural areas in increasing. Still this article provides some scope for optimism. It tells us:
The unemployment rate fell to 6.2% over the three months to the end of July, its lowest level since 2008, official figures show.
The number of jobless people fell by 146,000 to 2.02 million over the quarter, the Office for National Statistics (ONS) reported.
Those claiming Jobseeker’s Allowance in August fell below one million for the first time in six years.
But average weekly earnings still lagged way behind inflation.
Interest rates
Excluding bonuses, average earnings in the May to July period rose by 0.7% from a year earlier; including bonuses, they rose by 0.6%.
The current rate of inflation is 1.5%.
Last month, the Bank of England halved its forecast for average wage growth in 2014 to 1.25%, leading some commentators to believe it is under little pressure to raise interest rates any time soon.
According to the Bank’s latest Monetary Policy Committee (MPC) minutes, the nine-member committee voted 7-2 to hold interest rates at their historic low of 0.5%.
It is the second month in a row that two members have voted to raise interest rates, which have been unchanged since March 2009.
The number of people claiming Jobseeker’s Allowance in August fell by 37,200 to 966,500, the ONS said.
Over the year the number of unemployed had fallen by 468,000 – the largest annual fall in unemployment since 1988.
And the number of jobless 16-to-24 year olds fell by 106,000 to 747,000 over the quarter and by 213,000 over the year.
“These were the largest quarterly and annual falls in youth unemployment since comparable records began in 1992,” the ONS said.