The unemployment rate has hit its lowest level since 1974 but the number of workers dropping out of the jobs market has risen higher, according to official figures. The Office for National Statistics (ONS) said the UK unemployment rate fell to 3.6% in the three months to July – the lowest rate since May to July in 1974.
In Wales the unemployment rate amongst adults of working age was lower still at 3.2%, representing 49,000 people. Unemployment in Wales was down 5,000 on the previous quarter and 17,000 on the year. Most economists had been expecting the unemployment rate to hold steady at 3.8%.
However, the figures showed that the so-called economic inactivity rate for the UK rose to 21.7% – its highest level for more than five years. The ONS said those classed as economically inactive in the UK rose by 194,000 in the quarter to 9 million, due mostly to rising numbers of long-term sick as well as students, which has led to a shrinking labour market.
