The number of people in work in the UK has reached a record high of 32.6 million between October and December, according to the latest Office for National Statistics (ONS) figures. The employment rate for those aged 16 to 64 rose to 75.8%, the joint-highest since comparable records began in 1971.
Unemployment remained largely unchanged at 1.36 million, with the jobless rate steady at 4% — its lowest since early 1975. Weekly average earnings increased by 3.4% to £494.50 after adjusting for inflation, the highest real wage growth since March 2011.
Employment Minister Alok Sharma highlighted the resilience of the jobs market despite global economic challenges. ONS deputy head of labour market Matt Hughes noted that the employment rate remains at a record high and vacancies have reached a new record level, while the unemployment rate for women has fallen below 4% for the first time.
However, some economists caution that the positive figures may not last. Andrew Wishart of Capital Economics warned that hiring surveys deteriorated in January, suggesting a potential Brexit effect could weaken employment growth in the next official data. Samuel Tombs of Pantheon Macroeconomics expects wage growth to remain above 3% this year due to scarce surplus labour.
Suren Thiru of the British Chambers of Commerce expressed concerns that the uplift in real pay may not significantly boost consumer spending on the High Street, given weak consumer confidence and high household debt. He also warned that record vacancies indicate persistent labour and skills shortages, which could hinder UK growth and productivity.
