The number of people out of work has risen slightly according to the latest figures. The rate of UK unemployment rose to 3.7% in the three months to October, up from 3.6% in the previous three months, the Office for National Statistics said.
The data also showed that vacancies dropped by 65,000 in the three months to November to 1.9 million – the fifth quarterly fall in a row and the first annual fall since the beginning of last year. But the figures signalled that more people are choosing to return to work, with the inactivity rate falling to 21.5% as those in their 50s opt to go back to work at a time of rocketing costs.
The ONS said regular wages, excluding bonuses, rose by 6.1% in the three months to October – a record outside of the pandemic – as firms face increasing pressure to increase earnings. But wages continued to be outstripped by rising prices, falling by 3.9% after Consumer Prices Index inflation is taken into account.
Sam Beckett, ONS head of economic statistics, said: “This quarter the proportion of people neither working nor looking for a job fell, driven by a drop in the number of working-age people regarding themselves as retired. This tallies with other data which suggest more people in their 50s are thinking of going back to work, at a time when the cost of living is rising rapidly.
“With more people re-engaging with the labour market, there were more in employment and also more who were actively looking for a job. Though job vacancies are still at a very high level, they continue to fall and are now lower than they were a year ago.”
She added: “Some strikes were suspended in September for the state funeral of Her Majesty, but the number of working days lost rose again in October, to the highest monthly level in over 10 years.”
Chancellor of the Exchequer Jeremy Hunt said: “While unemployment in the UK remains close to historic lows, high inflation continues to plague economies around the world as we manage the impacts of Covid-19 and (Vladimir) Putin’s invasion of Ukraine. To get the British economy back on track, we have a plan which will help to more than halve inflation next year – but that requires some difficult decisions now.
“Any action that risks embedding high prices into our economy will only prolong the pain for everyone, and stunt any prospect of long-term economic growth. With job vacancies at near-record highs, we are committed to helping people back into work, and helping those in employment to raise their incomes, progress in work, and become financially independent.”
Shadow work and pensions secretary Jonathan Ashworth said: “Twelve years of Conservative failure on the economy has left working people with falling wages, employment lower than pre-pandemic and record numbers of people out of work for reasons of ill-health – costing billions more in benefit payments.
“Instead of turning their backs on people who want help to find a job, Labour would get Britain working again and target the highest employment in the G7 by shifting resources to local communities. A Labour government will get our economy firing on all cylinders with our green prosperity plan and an active partnership with business.”
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