Economics - Labour market update

Date : 12 October 2021

With economic recovery continuing, the labour market in the UK remains very strong, with 1.1 million unfilled job vacancies between July and September 2021 - a record number.

The unemployment rate is currently around 4.5%, so there are few potential recruits available. EU Exit has made it much harder for UK businesses to recruit from overseas and so wages are rising fast.

Growth in average total pay (including bonuses) was 7.2% and regular pay (excluding bonuses) was 6.0% for the three months to August 2021.

In real terms (adjusted for inflation), total and regular pay are now growing at a faster rate than inflation, at 4.7% for total pay and 3.4% for regular pay.


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