Living Wage ups pay as jobless numbers plunge by 20,000
THE lowest jobless rate for more than a decade and the National Living Wage lifting pay packets put a healthier gloss on the UK labour market today ahead of next week’s critical Brexit vote.
The jobless count fell by 20,000 to 1.671 million in the three months to April — which drove unemployment unexpectedly down to 5%, the lowest rate since October 2005, according to the Office for National Statistics.
Its figures also showed the number of people in work rose by 55,000 as the labour market largely withstood the uncertainty around the June 23 referendum on European Union membership. In April — when the £7.20 an hour minimum was introduced — annual pay growth was up 2.5% compared with 1.9% in March, marking the biggest rise since August last year.
ING Bank’s James Knightley said: “Brexit risks obviously nullify this report, but should the UK stay then the data do help to build the case for a rate rise early next year. There are still more job vacancies than there are people claiming unemployment benefits, which suggests a degree of labour market tightness.”
The stronger than expected figures gave a fillip to the pound, which rose half a cent against the dollar. London’s FTSE 100 clawed back some of Tuesday’s losses — up 1% to 5987.99 — but still remaining just below the 6000 mark.
