There are now fewer unemployed people than job vacancies in the UK for the first time ever, highlighting the crisis gripping the labour market as the cost-of-living crisis deepens.
The unemployment rate dropped to 3.7pc in the first three months of the year – below economists’ forecasts and its lowest since 1974.
But hundreds of thousands of people dropped out of the workforce during the pandemic, meaning companies are struggling to fill roles. They may offer higher wages to attract talent, which in turn could fuel inflation.
That said, adjusted for inflation, average earnings excluding bonuses dropped 1.9pc from a year earlier – the biggest fall since 2013 – as the squeeze on living standards deepens.
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