finance
UK Unemployment Rate Drops to 4.9% in Three Months to February
The UK's unemployment rate fell to 4.9% in the three months ending February, according to the Office for National Statistics. The decline was attributed to an increase in economic inactivity, particularly among students not seeking work. Wages grew by 3.6% annually in the December to February period, outpacing inflation despite being the slowest rate since late 2020.
Apr 21, 5:34 AM·2m read2 sources
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The UK's unemployment rate decreased to 4.9% in the three months to February, as reported by the Office for National Statistics (ONS). This figure was lower than the previous 5.2% and contradicted expectations that it would stay unchanged. The reduction occurred alongside a rise in the number of people not actively seeking employment, who are classified as economically inactive and thus excluded from unemployment statistics.
Liz McKeown, director of economic statistics at the ONS, stated that the increase in inactivity was notable among students choosing not to look for work while studying. The inactivity rate rose to 21% in the December to February period, up from 20.7% previously.
Most of the ONS data was collected before the start of the US-Israeli war with Iran in March, which has caused energy prices to rise.
increased at an annual rate of 3.6% between December and February, marking the weakest growth since late 2020, according to the ONS. This rate still exceeded inflation during the period. Early estimates from the ONS indicated that payrolled employment decreased by 11,000 in March, the first month of the conflict.
Job vacancies fell to 711,000 in the January to March period, the lowest level in nearly five years, the ONS reported. Dean Watson, who runs the Youth Employment Hub in Peterborough, Cambridgeshire, said that lack of confidence, mental health issues, anxiety, and nerves are major barriers for young people aged 16-24 in job searching.
The hub, located at the city's football stadium, provides careers advice and training. A 20-year-old attendee at the hub reported applying for construction roles without success since January and noted that attending has expanded job opportunities, including enrollment in a sales and leadership course.
