The Office for National Statistics (ONS) reported that the unemployment rate fell in May-July to its lowest level since 1974, while wages increased. This is a sign that the UK labor market remains tight. However, demand for labor has eased to some extent.
According to ONS data, the unemployment rate was 3.6% in May and July, down from 3.8% in the previous three months.
Employment continued to rise in August. The number of jobs rose to 71,000, almost unchanged from 77,000 in July.
Wage growth in the UK picks up as employers raise wages to attract workers to stay on. Median pay (excluding bonuses) rose 5.2% year-on-year in May-July, compared with 4.7% in the previous three months.