UK unemployment falls unexpectedly in Q2

The UK unemployment rate fell more than economists had expected in the second quarter. In a sign of strength in the British economy, the UK unemployment rate fell to 4.2% between April and June, according to data released Tuesday by the European Central Bank. ONS (Office for National Statistics).

In these three months, which were the last quarter before the July elections, 1.435 million people were unemployed in the country, which is equivalent to a decrease of 51 thousand people. As for employment, it rose by about 97 thousand people to a total of 33.094 million.

“There has been a fall in the unemployment rate, which is now lower than it was a year ago. At the same time, there has been a modest increase in both the total number of people in employment and the number of employees on the payroll in the last quarter,” commented the ONS’s director of economic statistics in the report published this morning.

“However, the medium-term scenario remains fairly mild, with employment rates lower than a year ago and the rate of growth in the number of employees slowing over the year,” Liz McKeown explained.

Economists had expected the unemployment rate in Britain to rise from 4.4% to 4.5%.

The Office for National Statistics now expects UK job vacancies to fall by 26,000 to 88,000 between May and July 2024. “The number of vacancies continues to fall, although the total number is still above pre-pandemic levels,” Liz McKeown explained.

“The unemployment rate unexpectedly fell to 4.2%, its lowest since February and much better than the Bank of England’s forecast of 4.4%, as outlined in its August Monetary Policy Report. However, policymakers are currently not giving much weight to unemployment data and these figures should be taken with a ‘grain of salt’,” warns Pepperstone analyst Michael Brown. research Consulted by Jornal Economico.

“However, earnings growth slowed significantly, and more than expected, from the pace seen in May, although a large degree of this slowdown was due to the strong base effect from rising NHS salaries. [SNS] “Last year, which has not been repeated – so far – to the same degree,” the specialist says.