The Fort Worth Press - UK unemployment dips but wages hit by inflation

USD -
AED 3.672965
AFN 71.770291
ALL 92.547357
AMD 387.332869
ANG 1.800986
AOA 848.358962
ARS 890.745987
AUD 1.505459
AWG 1.8025
AZN 1.702255
BAM 1.802763
BBD 2.017698
BDT 117.21004
BGN 1.80453
BHD 0.376945
BIF 2868.414988
BMD 1
BND 1.349311
BOB 6.904847
BRL 5.171302
BSD 0.999309
BTN 83.056998
BWP 13.576992
BYN 3.270314
BYR 19600
BZD 2.014288
CAD 1.365845
CDF 2809.999894
CHF 0.914202
CLF 0.032842
CLP 906.220195
CNY 7.242036
CNH 7.258875
COP 3864.74
CRC 512.328893
CUC 1
CUP 26.5
CVE 101.639374
CZK 22.763298
DJF 177.923215
DKK 6.875949
DOP 58.846845
DZD 134.501318
EGP 47.110303
ERN 15
ETB 57.41697
EUR 0.92145
FJD 2.228197
FKP 0.796099
GBP 0.78475
GEL 2.710115
GGP 0.796099
GHS 14.538868
GIP 0.796099
GMD 67.775035
GNF 8590.127667
GTQ 7.762328
GYD 209.063633
HKD 7.80735
HNL 24.694658
HRK 6.979956
HTG 132.857077
HUF 354.519498
IDR 16086.2
ILS 3.676545
IMP 0.796099
INR 83.087797
IQD 1308.980634
IRR 42074.999854
ISK 138.130276
JEP 0.796099
JMD 156.390284
JOD 0.708904
JPY 156.924986
KES 132.999575
KGS 87.955698
KHR 4076.139558
KMF 455.650221
KPW 899.999697
KRW 1363.609723
KWD 0.30691
KYD 0.832711
KZT 442.579432
LAK 21388.210352
LBP 89486.380606
LKR 299.350141
LRD 193.574997
LSL 18.479865
LTL 2.95274
LVL 0.60489
LYD 4.842144
MAD 9.96737
MDL 17.727796
MGA 4428.261972
MKD 56.721411
MMK 2098.538969
MNT 3449.999773
MOP 8.041331
MRU 39.740151
MUR 46.108899
MVR 15.460355
MWK 1732.589759
MXN 16.69031
MYR 4.701353
MZN 63.49719
NAD 18.480219
NGN 1475.96001
NIO 36.779278
NOK 10.548685
NPR 132.892105
NZD 1.629555
OMR 0.384854
PAB 0.999272
PEN 3.735678
PGK 3.883486
PHP 58.202502
PKR 277.991612
PLN 3.920074
PYG 7516.246486
QAR 3.641501
RON 4.585804
RSD 107.942977
RUB 91.62501
RWF 1314.098723
SAR 3.750501
SBD 8.475185
SCR 14.570623
SDG 601.000233
SEK 10.647495
SGD 1.349605
SHP 1.26345
SLE 22.847303
SLL 20969.50094
SOS 571.000219
SRD 32.2745
STD 20697.981008
SVC 8.743744
SYP 2512.529855
SZL 18.372125
THB 36.610479
TJS 10.771968
TMT 3.51
TND 3.11875
TOP 2.36255
TRY 32.178905
TTD 6.785941
TWD 32.145502
TZS 2600.00023
UAH 40.109693
UGX 3802.246321
UYU 38.456752
UZS 12703.533522
VEF 3622552.534434
VES 36.500745
VND 25455
VUV 118.72199
WST 2.803093
XAF 604.652256
XAG 0.032462
XAU 0.000427
XCD 2.70255
XDR 0.754851
XOF 604.652256
XPF 110.698121
YER 250.349705
ZAR 18.416098
ZMK 9001.204962
ZMW 26.670968
ZWL 321.999592
  • BCC

    4.6500

    141.11

    +3.3%

  • SCS

    0.1300

    13.18

    +0.99%

  • NGG

    -1.0300

    60.69

    -1.7%

  • BCE

    -0.2200

    33.57

    -0.66%

  • GSK

    -0.0300

    45.12

    -0.07%

  • CMSD

    0.0000

    24.09

    0%

  • JRI

    0.0250

    11.395

    +0.22%

  • CMSC

    0.1200

    24.24

    +0.5%

  • BTI

    -0.1100

    30.62

    -0.36%

  • RELX

    0.5300

    44.69

    +1.19%

  • AZN

    0.3600

    78.54

    +0.46%

  • VOD

    -0.0300

    9.33

    -0.32%

  • RBGPF

    -1.8300

    55.21

    -3.31%

  • RIO

    0.4300

    71.85

    +0.6%

  • BP

    0.3000

    36.72

    +0.82%

  • RYCEF

    0.1020

    5.65

    +1.81%

UK unemployment dips but wages hit by inflation
UK unemployment dips but wages hit by inflation / Photo: © AFP/File

UK unemployment dips but wages hit by inflation

Britain's unemployment rate has fallen further to a near five-decade low, official data showed Tuesday, but the value of wages continues to erode as inflation soars.

Text size:

The unemployment rate eased to 3.7 percent in the three months to the end of March, the Office for National Statistics (ONS) said in a statement, sending the pound rising against the dollar on expectations of another interest rate hike.

That was the lowest level in more than 47 years and compared with a rate of 3.8 percent in the quarter to the end of February.

Bank of England (BoE) governor Andrew Bailey on Monday warned that fallout from surging prices driven by the Ukraine war would cause unemployment to increase.

He described as "apocalyptic" the situation surrounding soaring food costs -- which he said were fuelled by major wheat and cooking oil producer Ukraine finding itself unable to export its goods.

Addressing British MPs, Bailey spoke also of a "very real income shock" coming from surging energy and food prices.

While average wages are rising in the UK, the ONS on Tuesday said they continued to sink in real terms as Britain, like other countries, faces runaway inflation.

The pound on Tuesday rallied 1.3 percent to $1.2480 as traders bet that soaring inflation, lifted in part by UK wage rises, would force the BoE to raise interest rates further, despite growing fears of recession.

"There continued to be a mixed picture for the labour market," said Darren Morgan, ONS director of economic statistics.

Total employment remained below its pre-pandemic level, with job vacancies at a record-high of almost 1.3 million at the end of April.

"Indeed, with the latest fall in unemployment to its lowest rate since 1974, there were actually fewer unemployed people than job vacancies for the first time since records began," Morgan said.

While companies struggle to fill posts after the pandemic caused people to change careers, Morgan noted that since the outbreak of Covid, about half a million more people in the UK "have completely disengaged from the labour market".

For those in work, regular earnings excluding bonuses were "falling sharply in real terms", he added.

- 'Unemployment to rise' -

Bailey on Monday said "the main driver of inflation and what brings it down is the very big, real income shock which is coming from outside forces and, particularly, energy prices and global goods prices.

"That will have an impact on domestic demand and it will dampen activity, and I'm afraid it looks like it will increase unemployment."

He described inflation fallout from the war in Ukraine as "a major worry" for Britain and the developing world.

"Sorry for being apocalyptic but that is a major concern," Bailey said.

He spoke after official data last week showed Britain's economy shrank in March on fallout from soaring inflation, increasing the prospect of the country falling into recession.

Earlier this month, the BoE warned that Britain risks falling into recession with UK inflation expected to top 10 percent, a four-decade high, by the end of the year.

It came as the central bank raised its main interest rate by a quarter-point to one percent to tackle rocketing prices.

That was the fourth straight increase by the BoE, while its key rate now stands at the highest level since the global financial crisis in 2009.

Raised rates have lifted borrowing costs for consumers and businesses, further impacting spending.

T.Harrison--TFWP