The UK’s unemployment rate is its lowest since 1974 after official figures today showed a surprise drop to 3.6% in the three months to July.
The number of people in employment rose by 40,000 over the previous quarter, but the squeeze on household budgets continued.
Growth in regular pay excluding bonuses was 5.2% in May to July, which when adjusted for inflation over the year meant a fall of 2.8%. Average regular pay growth for the private sector was 6% and 2% for the public sector, the widest gap recorded outside the pandemic.
