[UK] Job vacancies outnumber unemployed for very first time

For the first time since records began, there are more job vacancies than unemployed people in the UK, BBC News reports.

Between January and March, the unemployment rate fell to 3.7 per cent - its lowest for almost 50 years - as job openings rose to a new high of 1.3 million.

But wages, excluding bonuses, failed to keep pace with price increases and the problem is expected to be exacerbated by rising food and fuel costs.

The Office for National Statistics (ONS) said the figures show "a mixed picture".

Ben Harrison - director of the Work Foundation think tank at Lancaster University - said, "Despite employment continuing to rise, today's figures underline the challenges facing workers who are seeing inflation eat away at their living standards."

The data reportedly showed that there was a rise in the number of people moving from economic inactivity - classed as individuals aged 16-64 who haven't been working or seeking a job - into employment.

In addition, instances of people moving from job to job also reached a record high "driven by resignations rather than dismissals", the ONS said.

"Total employment, while up on the quarter, remains below its pre-pandemic level," Darren Morgan - director of economic statistics at the ONS - said.

"Since the start of the pandemic, around half a million more people have completely disengaged from the labour market.

"However, job vacancies are still rising, reaching yet another record high."

Wages

Pay, excluding bonuses, reportedly rose by 4.2 per cent between January and March but failed to keep up with the rising cost of living which hit 7 per cent in March and is expected to go higher.

This meant that pay, when adjusted for the impact of rising prices, and excluding bonuses, dropped by 1.2 per cent; the biggest fall since 2013.

Some sectors such as construction and financial services benefitted from bonus payments as firms put up pay to recruit staff, the ONS said. This saw total pay - which includes bonuses - rise by 7 per cent between January and March, keeping pace with rising prices.

Mr Morgan said, "Continued strong bonuses in some sectors such as construction and especially finance mean that total pay is continuing to grow faster than prices on average, but underlying regular earnings are now falling sharply in real terms."

Commenting on the latest figures, UK Chancellor Rishi Sunak said, "I understand that these are anxious times for people, but it's reassuring that fewer people are out of work than was previously feared."

However, Liberal Democrat Treasury spokesperson Christine Jardine said, "These figures confirm families are facing a cost of living nightmare, with wages failing to keep up with soaring energy bills and food prices."

Jake Finney - economist at accountancy firm PwC - said the jobless rate could begin to tick higher, looking ahead.

"We expect that unemployment could start to rise towards the end of this year, as headwinds from the war in Ukraine reduce demand for labour.

"The delayed impact is because the labour market tends to lag behind the rest of the economy".

Source: BBC News

(Quotes via original reporting)

For the first time since records began, there are more job vacancies than unemployed people in the UK, BBC News reports.

Between January and March, the unemployment rate fell to 3.7 per cent - its lowest for almost 50 years - as job openings rose to a new high of 1.3 million.

But wages, excluding bonuses, failed to keep pace with price increases and the problem is expected to be exacerbated by rising food and fuel costs.

The Office for National Statistics (ONS) said the figures show "a mixed picture".

Ben Harrison - director of the Work Foundation think tank at Lancaster University - said, "Despite employment continuing to rise, today's figures underline the challenges facing workers who are seeing inflation eat away at their living standards."

The data reportedly showed that there was a rise in the number of people moving from economic inactivity - classed as individuals aged 16-64 who haven't been working or seeking a job - into employment.

In addition, instances of people moving from job to job also reached a record high "driven by resignations rather than dismissals", the ONS said.

"Total employment, while up on the quarter, remains below its pre-pandemic level," Darren Morgan - director of economic statistics at the ONS - said.

"Since the start of the pandemic, around half a million more people have completely disengaged from the labour market.

"However, job vacancies are still rising, reaching yet another record high."

Wages

Pay, excluding bonuses, reportedly rose by 4.2 per cent between January and March but failed to keep up with the rising cost of living which hit 7 per cent in March and is expected to go higher.

This meant that pay, when adjusted for the impact of rising prices, and excluding bonuses, dropped by 1.2 per cent; the biggest fall since 2013.

Some sectors such as construction and financial services benefitted from bonus payments as firms put up pay to recruit staff, the ONS said. This saw total pay - which includes bonuses - rise by 7 per cent between January and March, keeping pace with rising prices.

Mr Morgan said, "Continued strong bonuses in some sectors such as construction and especially finance mean that total pay is continuing to grow faster than prices on average, but underlying regular earnings are now falling sharply in real terms."

Commenting on the latest figures, UK Chancellor Rishi Sunak said, "I understand that these are anxious times for people, but it's reassuring that fewer people are out of work than was previously feared."

However, Liberal Democrat Treasury spokesperson Christine Jardine said, "These figures confirm families are facing a cost of living nightmare, with wages failing to keep up with soaring energy bills and food prices."

Jake Finney - economist at accountancy firm PwC - said the jobless rate could begin to tick higher, looking ahead.

"We expect that unemployment could start to rise towards the end of this year, as headwinds from the war in Ukraine reduce demand for labour.

"The delayed impact is because the labour market tends to lag behind the rest of the economy".

Source: BBC News

(Quotes via original reporting)