Updated
Updated · The Guardian · Oct 20
UK Unemployment Falls to 4.7% as Vacancies Drop to 691,000 Before Budget
Updated
Updated · The Guardian · Oct 20

UK Unemployment Falls to 4.7% as Vacancies Drop to 691,000 Before Budget

3 articles · Updated · The Guardian · Oct 20

Summary

  • The UK jobless rate fell to 4.7% in the three months to August from 4.9%, defying forecasts for a rise to 5% in the last labor-market reading before John Healey’s first budget.
  • Payrolls added 13,000 workers between August and September to 30.3 million, while unemployment among 16- to 24-year-olds fell by 28,000 on the quarter to 715,000.
  • Vacancies dropped by 21,000 to 691,000 in the three months to September—the lowest since 2021—prompting economists to warn the economy is moving sideways and hiring demand remains weak.
  • Pay data were mixed: regular wage growth edged up to 3.7% from 3.6%, but total pay growth including bonuses slowed to 3.7% from 3.9%, still above August inflation of 3.1%.
  • Sterling rose about half a cent to $1.3352 after the release, while markets still expect the Bank of England to keep tightening as inflation is seen rising to 3.4% in September.

Insights

With public sector pay surging past private wages, is the UK's resilient job market actually masking a hidden private sector stagnation?
Why is UK unemployment falling while job vacancies hit a multi-year low, and what does this paradox mean for your career?
Could the Bank of England's fear of energy-driven inflation trigger a surprise rate hike despite the growing youth jobs drought?