According to the report from the Office for National Statistics (ONS), the unemployment rate (for people aged 16 years and over) was estimated at 4.1% in May to July, below estimates of a year ago, and decreased in the latest quarter (-0.2%). Economists also expected a decrease to 4.1% from 4.2% in June. The economic inactivity rate was estimated at 21.9% in May to July, above estimates of a year ago, but decreased in the latest quarter (-0.3%).
The ONS said that in July, payrolled employees decreased by 6,000 (0.0%) compared to June, but rose by 203,000 (+0.7%) year-on-year. The claimant count increased in July by 23,700 on the month, to 1.792 million. Economists had expected an increase of 95,500. Meanwhile, in May to July, the estimated number of vacancies decreased by 42,000 q/q, to 857,000. Vacancies decreased on the quarter for the 26th consecutive period but are still above pre-coronavirus pandemic levels. In June, the estimated number of workforce jobs was 37.1 million, up by 503,000 from the level of a year ago but down by 28,000 on the quarter.
The data also showed that from May to July, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 4.0% per annum (+4.6% in the previous three months) and 5.1% per annum (+5.4% in the previous three months). Economists expected an increase by 4.1% and 5.1%, respectively. This total annual growth is affected by the NHS and civil service one-off payments made in June and July 2023. Adjusted for inflation, wage growth in real terms was 1.1% for total pay and 2.2% for regular pay.