UK unemployment falls to 4.7% as wage growth picks up
UK unemployment has fallen to 4.7% in the three months to August, the lowest in more than a year, while average wage growth rose to 3.7% and vacancies fell to 691,000.
The Full Story
A plain summary built from the channels that reported this story.
UK unemployment fell to 4.7% in the three months to August, the Office for National Statistics said. That is the lowest rate for more than a year and down from a peak of 5.2% in the three months to December last year. Average pay growth rose to 3.7%, up from 3.6%. Wage growth is outpacing inflation, which in theory gives households a little more spending power. The unexpected drop was seen as welcome news for the Chancellor ahead of next week's Budget.
Vacancies fell by 21,000 to 691,000 in the three months to September. Outside the pandemic years, that is the lowest number since 2014. An ONS survey suggested smaller firms were cutting back on recruitment because of higher labour costs. The labour market was described as flat but showing some resilience.
The figures come before next week's Budget, the latest inflation data tomorrow and a Bank of England interest rate meeting in a fortnight. The government said the figures show the UK employment rate is now the third highest in the G7, but it admitted too many young people remain locked out of work. The Conservatives said vacancy rates show businesses cannot afford to hire and accused the government of attacking businesses and taxing jobs.
The youth jobs picture was a major focus. Around a million young people in the UK are NEET, meaning not in education, employment or training. An upcoming review into youth unemployment is expected to set out the prognosis. The government says it is working with industry to get young people off benefits and into jobs. In Blackburn, young people described a tough jobs market: applying for dozens or hundreds of jobs, being ghosted by employers and getting few interviews. Some with degrees, including biomedical science degrees, are also struggling to find opportunities. A programme with Blackburn College and the local NHS trust offers a guaranteed interview at the end of a three-week placement. Staff said participants work hard and want a chance to show what they can do. Young people cited Covid disruption and repeated changes in government as part of the wider problem, and urged others to keep trying.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |  |  |
|---|---|---|---|
| Reported by all 3 channels | |||
| UK unemployment rate fell to 4.7%, the lowest since July last year. | |||
| Reported by a few · 2 channels | |||
| Job vacancies dropped by 21,000 to 691,000 in the three months to September. | Not reported by Channel 5 | ||
| Wage growth increased slightly. | Not reported by Channel 4 | ||
| Only on one channel | |||
| Around one million young people in the UK were reported to be not in education, employment or training. | Not reported by Channel 5 | Not reported by BBC One | |
Channel Perspectives
What each channel focused on, with key quotes.
5 News gave the story a brief one-line treatment. It reported the fall in unemployment and a slight pick-up in wage growth, then moved on to other news. It did not cover vacancies, political reaction or the youth jobs picture.
- “The UK's unemployment rate has fallen to 4.7% to stand at its lowest level since July last year.”
- “The wider figures also showed a slight pick-up in the pace of wage growth.”
BBC News at One led with the ONS detail and the tension between fewer people out of work and fewer vacancies. Its business correspondent said small firms are tightening their belts over labour costs and called the labour market flat but resilient. It also carried government and Conservative reaction ahead of the Budget.
- “4.7% is not worth hugely celebrating, but it does show there are fewer people out of work.”
- “the labour market is pretty flat, but showing a bit of resilience.”
- “wage growth is outpacing inflation, which in theory gives us all a bit more spending power.”
Channel 4 News reported the headline figures as welcome news for the Chancellor, then shifted to the shrinking number of job opportunities and the youth jobs crisis. Its political reporter spoke to young people in Blackburn about repeated applications, ghosting and few interviews, and it put the NEET total at around a million. It also highlighted smaller firms cutting recruitment over higher labour costs.
- “the uk's unemployment rate has fallen to the lowest level in more than a year”
- “vacancies fell to an estimated 691 000 in the three months to september outside of the pandemic years that's the lowest number since 2014”
- “there's around a million young people in the uk who are neat not in education employment or training”
Broadcast Timeline
News broadcasts tracked for this story, in time order.