Large fall in unemployment masks signs of a weaker labour market
Commenting on today's labour market statistics, Charles Levy, senior economist at Lancaster University’s Work Foundation, said:
“Today’s Labour Market Statistics show a record fall in unemployment of 154,000 when comparing the three months to August with the previous three months. However, job creation appears to be slowing. In the same period employment increased by only 46,000, far below the rate we have seen in the past year.
The fall in unemployment appears to be connected to a significant withdrawal from the labour market. Economic inactivity increased by 113,000 in the three months to August. That coupled with sluggish wage growth which remained at half the rate of inflation in August should start alarm bells ringing and be the focus of the Chancellor’s Autumn Statement.”
