UK’s unemployment rate tumbles to lowest since 1975

Britain has recorded lowest unemployment rate and acute shortage of migrant workers from European Union (EU).

Country’s unemployment rate was at its lowest at 4.2 per cent since 1975, according to the data released for the month of July by UK’s Recruitment and Employment Confederation (REC) on Wednesday (8).

Most of the employers have reported shortage of migrant workers from EU countries after Britain voted for Brixit in 2016.

The number of people hired for permanent jobs in Britain moved up at its slowest pace in nine months in July, the report said. The number of vacancies have jumped significantly at fastest pace since November 2017 even if the employers are ready to recruit people including migrants from EU.

According to an official data, the number of EU immigrants to Britain fell to a five-year low last year.

“July REC data indicated that demand for staff continued to increase at a considerably stronger pace in the private sector than in the public sector. The strongest increase in staff vacancies was seen for permanent private sector workers, while the weakest rise was signaled for permanent public sector roles,” REC said in its report.

“IT and computing was the most in-demand category for permanent staff in July. Nonetheless, steep increases in vacancies were also registered in the remaining nine job categories. The slowest rise in demand was reported for retail workers. Temporary staff vacancies rose across all of the ten monitored job categories in July, with the sharpest increases seen across blue collar, nursing, and medical care. The slowest, but still marked, rise in short-term roles was signaled for professional,” REC pointed out.

According to Sophie Wingfield, REC Head of Policy, “The rise in interest rates for only the second time in a decade may leave some people feeling the pinch. But a new job is one way people can ease the burden on their finances. With our data showing starting salaries continuing to rise, the latest official government figures suggest that we are finally seeing the effects of a tighter labour market feed through to pay.”

“Following a period of turbulence and big name closures, the World Cup and heatwave had retailers enjoying a ‘summer bounce’ and basking in the sun with demand for temporary staff on the up with many businesses positively revising their hiring plans. Right now students on their summer break can make the most of these opportunities and cash-in while gaining valuable experience and new skills,” added Wingfield.