UK’s unemployment reduces to lowest since 1974

Britain’s unemployment rate dropped to the lowest since 1974 as more people dropped out of the workforce.

The government said 3.6% of adults were out of work and looking for jobs in the three months through July, lower than the 3.8% pace in the previous months. Economists had expected no change.

The decline was driven by a sharp increase in the people classed as economically inactive, or not seeking jobs. A total of 194,000 people left the workforce over the period due to increases in long-term sickness and young people moving into education.

Employment increased by 40,000 in July, less than the 125,000 economists had expected
Real wages adjusted for inflation fell 2.8% in the quarter through July, slower than the decline in previous months
Job vacancies dropped 34,000 from the previous quarter, the biggest decline since summer 2020.