The rate of UK unemployment remained unchanged at 4.9% in the three months to June according to the latest Office for National Statistics [ONS] published today.
Dr Bingsong Wang believes that Britain's job market is still waiting to 'catch up' with the economy, he states, “The latest figures suggest that Britain’s jobs market may be finding a floor, but it has not yet found its feet.
"Unemployment remains close to 5%, while vacancies are hovering at around 710,000—well below their pre-pandemic level. Payrolled employment has also been broadly flat. This is not a jobs crisis, but neither is it a convincing recovery.
"The economy grew during the spring, yet employers remain reluctant to turn that growth into new jobs. Many businesses appear to be meeting demand with their existing workforce rather than committing to additional staff.
"There are some grounds for cautious optimism. Recent recruitment surveys suggest that the long decline in permanent hiring may be ending. But one better month does not make a recovery. Businesses need sustained confidence before a pause in job cutting becomes a return to job creation.
"Pay growth is also slowing. That should ease concerns about inflation, but the gain for households is limited: after allowing for rising prices, workers’ spending power is improving only modestly.
"The clearest message is that the labour market has stopped getting markedly worse, but it is not yet getting meaningfully better. Britain’s economy has moved forward; its jobs market is still waiting to catch up.”
Read Dr Bingsong's comment for LBC.
