Unemployment rate falls and wage growth slows – what it means for your money
UNEMPLOYMENT has fallen across the UK as wages slow to their lowest level in two years, according to new data.
The rate of unemployment fell to 4.2% in between April and June, from 4.4% the previous three months.
The Office for National Statistics (ONS) said the number of people aged between 16 and 64 in work stood at 74.5% over the same time period.
However, it said economic activity among the same age group was 22.2%.
Figures from the ONS also reveal wage growth, excluding bonuses, has slowed to its lowest level in two years.
Liz McKeown, director of economic statistics at the ONS, said: "Basic pay growth, while remaining relatively strong, continues to slow.
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"Growth in total pay slowed markedly, with last year's one-off NHS bonuses affecting the comparison.
"There was a fall in the unemployment rate, which is now lower than a year ago."
The latest figures from the ONS also reveal there were an estimated 884,000 job vacancies in the UK in May to July.
That's a 26,000 fall or 2.8% drop from the period February to April, in a boon for the employment market.
The ONS said the number of job vacancies decreased in the last quarter for the 25th consecutive period.
Liz added: "The medium-term picture remains somewhat subdued with the employment rate still lower than a year ago and the growth rate in the number of payrolled employees having slowed over the year.
"The number of job vacancies continues to decline, although the total number remains above pre-pandemic levels."
UNEMPLOYMENT FALLS
Lower unemployment rates are good news as it means more people are in work and earning money.
It also means more money is being pumped into the economy which can see GDP rise.
When GDP goes up, it means the economy is growing and the Government has more funds to spend on public services.
That means more money pumped into local libraries, schools and transport networks.
It can also see taxes fall as the Government has less of a need to top up its coffers.