UK – Unemployment at lowest in more than five years and real wage growth

Britain’s unemployment rate fell to its lowest level in more than five years in the first quarter of 2014, helped by a record number of people getting jobs.

Pay growth rose more than inflation for the first time since 2010 but was below forecasts.

The latest signs of recovery in the labour market come shortly before Bank of England Governor Mark Carney was due to explain why the BoE is keeping interest rates at a record low.

Chosen excerpts by Job Market Monitor. Read the whole story at  UK unemployment falls to lowest in more than five years | Reuters.

Key Points

• Latest estimates for January to March 2014 show that employment continued to increase, unemployment continued to fall, as did the number of economically inactive people aged from 16 to 64. These changes continue the general direction of movement over the past two years.
• There were 30.43 million people in work for January to March 2014, 283,000 more than for October to December 2013 and 722,000 more than a year earlier. These increases in employment are partly due to more self-employed people.
• 72.7% of people aged from 16 to 64 were in work for January to March 2014, up from 72.1% for October to December 2013 and up from 71.4% for a year earlier.

• There were 2.21 million unemployed people for January to March 2014, 133,000 fewer than for October to December 2013 and 309,000 fewer than a year earlier.
• The unemployment rate was 6.8% of the economically active population (those in work plus those seeking and available to work) for January to March 2014, down from 7.2% for October to December 2013 and down from 7.8% for a year earlier.
• There were 8.85 million economically inactive people (those out of work but not seeking or available to work) aged from 16 to 64 for January to March 2014. This was 85,000 fewer than for October to December 2013 and 155,000 fewer than a year earlier.
• 21.9% of people aged from 16 to 64 were economically inactive for January to March 2014, down from 22.1% for October to December 2013 and down from 22.4% for a year earlier. The inactivity rate has not been lower since October to December 1990.
• Pay including bonuses for employees in Great Britain for January to March 2014 was 1.7% higher than a year earlier, with pay excluding bonuses 1.3% higher.