Connect with us

Hi, what are you looking for?


UK unemployment falls further as wages lag prices

LONDON — Unemployment in the U.K. stood at 3.8 percent between December 2021 and February 2022, down 0.2 percentage points, according to figures out Tuesday from the Office for National Statistics.

Experimental payroll data for March also showed continuing job gains despite rocketing inflation and global economic uncertainty.

Meanwhile, more people continued to give up on finding employment, the ONS warned, and except for bonuses, real wages lagged well behind inflation.

“While unemployment has fallen again, we are still seeing rising numbers of people disengaging from the labour market, and as they aren’t working or looking for work, are not counted as unemployed,” said Darren Morgan, head of economic statistics at the ONS, in a statement. “While strong bonuses continue to mitigate the effects of rising prices on people’s total earnings, basic pay is now falling noticeably in real terms.”

U.K. Chancellor Rishi Sunak had a positive spin on the data, telling media in a statement: “Today’s stats show the continued strength of our jobs market, with the number of employees on payrolls rising once again in March and unemployment falling further below pre-pandemic levels.”

The Labour Party, for its part, attacked the government for not doing enough to support living standards for employees. “Today’s figures show that Conservative choices are leaving real wages squeezed and people worse off,” said Labour’s Shadow Chief Secretary to the Treasury Pat McFadden, blasting Sunak for making “Britain the only major economy to land working people with higher taxes in the midst of a cost of living crisis.”

Wage growth without bonuses was 4 percent, while inflation is expected to exceed 8 percent in the coming months.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like


Paul Dallison writes Declassified, a weekly satirical column. Boris Johnson is toast. Finished. Done for. But despite resigning, and befitting of a man who thinks...


LONDON — Boris Johnson has finally been persuaded to resign, after more than one third of his own government colleagues — including a clutch...


Jamie Dettmer is opinion editor at POLITICO Europe. “Nothing in his lifeBecame him like the leaving it.” These lines, from Shakespeare’s “Macbeth,” are of...


Up to 71 million people from the poorest countries in the world are projected to be facing severe poverty as a result of the...


Press play to listen to this article LONDON — Boris Johnson will resign after a wave of government resignations and a revolt from his...


In this ongoing project, POLITICO is hosting a sort of digital diary following Ukrainian refugees across Europe as they adjust to lives forever changed...


This article is the product of a POLITICO Working Group. The EU aims to revamp its approach to chemicals as part of its long-term zero...


This article is the product of a POLITICO Working Group. Post-Brexit U.K. is looking for fields where it can get ahead of the EU —...