The UK unemployment rate rose to 3.7% in the quarter to October

The Office for National Statistics (NOS) reported this Tuesday (13) that the unemployment rate in the United Kingdom rose slightly (0.1 percentage point) to 3.7% at the end of the quarter ending in October. . The rate is still 0.3 percentage points below pre-pandemic levels.

According to the ONS, the economic inactivity rate fell by 0.2 points quarter-on-quarter to 21.5% in the August to October period. The drop in unemployment last quarter was driven by people aged 50 to 64. Analyzing economic inactivity rationally, the quarterly decline was driven by pension inactivity.

From September to November 2022, the number of vacancies in the UK fell by 65 thousand over the quarter to 1.187 million. Despite five consecutive quarters of declines, vacancy rates remain at historic highs. The decline this quarter reflects uncertainty across industries, as respondents cited economic pressures as a factor in delaying hiring.

The UK employment rate is estimated at 75.6%, 0.2 percentage points higher than the previous three-month period and 1.0 percentage points lower than the pre-pandemic period (December 2019 to February 2020).

The average increase in regular compensation was 6.9% in the private sector and 2.7% in the public sector from August to October 2022. Apart from the peak of the pandemic, this is the highest growth rate in the private sector.

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On a real basis (adjusted for inflation), total and regular compensation decreased by 2.7%. This rate is slightly lower than the record decline in real regular wages seen from April to June 2022 (3.0%), but it is still one of the largest declines in growth since comparable records began in 2001.