For the first time since 2001, when records began to be kept in England, the number of jobs sought exceeded the number of unemployed.
According to the data released by the National Statistical Institute (ONS), the unemployment rate decreased to 3.7 percent in the January-March 2022 period. This is the lowest unemployment rate in nearly 50 years.
In the first quarter of the year, the number of jobs opened increased to 1.3 million with a record increase.
‘Salaries lagged behind price hikes’
However, salaries and wages lagged behind the rise in prices. Due to the increase in food and energy prices, the problem is expected to grow even more in the coming period.
“Total employment is still below pre-pandemic levels despite the increase in the first quarter of the year. Nearly half a million people have been completely disconnected from the labor market since the start of the pandemic. But the latest data indicate a record increase in the number of jobs opened,” said Darren Morgan, ONS Director of Economic Statistics. .
The data disclosed show that the number of people who are unemployed or started to work while looking for a job has started to increase.
The number of people changing jobs has also increased, according to the ONS. It is stated that the main reason for job changes is not layoffs, but resignations.
However, Ben Harrison, head of the Lancaster University-affiliated Work Foundation think tank, said: “Despite the rise in employment, today’s data reveals the challenges faced by workers whose living standards are starting to decline.”
Inflation is 7 percent but salaries are up 4.2 percent
In the UK, wages (excluding bonuses) increased by an average of 4.2 percent in the January-March period.
Annual inflation rose to 7 percent in March. Inflation is expected to exceed 10 percent by the end of the year.
This means that salaries fell 1.2 percent in the first quarter, given the impact of rising prices. There had been no such decline since 2013.
Commenting on the data, Finance Minister Rishi Sunak said, “I know we are going through difficult times, but we are glad that the number of unemployed is not as much as we feared.”
Christine Jardine, Treasury Spokesperson of the opposition Liberal Democrat Party, said: “These data show that families have a livelihood nightmare. Salaries cannot keep up with rising energy and food prices.”