UK labor market cooled slightly in the third quarter
The U.K.’s tight labor market cooled slightly in the third quarter as the economy went into contraction.
Unemployment came in at 3.6% in the three months to September, up from an almost five-decade low of 3.5% registered between June and August.
Data from the Office for National Statistics indicated that payrolled employees grew by 74,000 in October to an all-time high of 29.8 million, though jobless claimant numbers rose slightly over the month.
Job vacancies declined for a fourth straight quarter, but remained at historically high levels, while pay growth increased, signaling persistent inflationary pressures.
Daniel Mahoney, U.K. economist at Handelsbanken, said the latest figures highlight that the U.K. labour market continues to pose a “headache” for policymakers.
“The growth in inactivity rates is an especially concerning problem given that has been observed much more strongly in the U.K. compared to many of its G7 counterparts. This goes some way to explaining why the U.K.’s economic performance following the pandemic has…
