UK / Unemployment rate slips to four-and-a-half year low of 7.4%

Britain’s unemployment rate has slipped to a four-and-a-half year low of 7.4%, edging closer to the “threshold” at which the Bank of England has said it will consider raising interest rates.

The Office for National Statistics (ONS) said on Wednesday that unemployment in the three months to October was 2.39 million, or 7.4% of the working age population, down from 7.6% in the three months to September.

Under the Bank’s policy of forward guidance, governor Mark Carney promised that borrowing costs would remain on hold at least until unemployment has fallen below 7%.

When the policy was announced in August, the Bank\’s monetary policy committee expected that to take three years; but its latest prediction is that this could be as soon as 2015.

“The jobless rate is falling far faster towards the Bank of England’s 7% threshold than policymakers envisaged when establishing the marker back in the summer,” said Chris Williamson, chief economist at City data provider Markit. “Employment is surging higher and unemployment collapsing in the UK as the economic recovery has moved into a higher gear.”

Chosen excerpts by Job Market Monitor. Read the whole story at 

via UK unemployment rate slips to four-and-a-half year low of 7.4% | Business | theguardian.com.

The Official Press Release

• The employment rate for those aged from 16 to 64 for August to October 2013 was 72.0%, up 0.4 percentage points from May to July 2013. There were 30.09 million people in employment aged 16 and over, up 250,000 from May to July 2013.
• The unemployment rate for August to October 2013 was 7.4% of the economically active population, down 0.3 percentage points from May to July 2013. There were 2.39 million unemployed people, down 99,000 from May to July 2013.
• The inactivity rate for those aged from 16 to 64 for August to October 2013 was 22.1%, down 0.1 percentage points from May to July 2013. There were 8.92 million economically inactive people aged from 16 to 64, down 45,000 from May to July 2013.
• Between August to October 2012 and August to October 2013 total pay rose by 0.9% and regular pay rose by 0.8%.

Youth Unemployment

For August to October 2013:

• There were 3.65 million 16 to 24 year olds in employment (23% of whom were in full-time education), up 49,000 from May to July 2013.

• There were 2.62 million economically inactive 16 to 24 year olds (75% of whom were in full-time education), down 37,000 from May to July 2013.

• There were 941,000 unemployed 16 to 24 year olds (32% of whom were in full-time education), down 19,000 from May to July 2013.

The unemployment rate for 16 to 24 year olds was 20.5% for August to October 2013, down 0.5 percentage points from May to July 2013. In accordance with international guidelines, unemployment rates are calculated as the number of unemployed people divided by the economically active population (those in employment plus those who are unemployed). Increasing numbers of young people going into full-time education reduces the size of the economically active population and therefore increases the unemployment rate.

Chosen excerpts by Job Market Monitor. Read the whole story at 

 via Labour Market Statistics, December 2013