Zürcher Nachrichten - UK unemployment dips but wages hit by inflation

EUR -
AED 4.02547
AFN 78.958383
ALL 99.102869
AMD 431.181955
ANG 1.961978
AOA 1003.890567
ARS 1184.765046
AUD 1.813586
AWG 1.97271
AZN 1.867466
BAM 1.955265
BBD 2.22659
BDT 133.983319
BGN 1.955265
BHD 0.412787
BIF 3277.602688
BMD 1.09595
BND 1.474296
BOB 7.619914
BRL 6.405394
BSD 1.102698
BTN 94.079244
BWP 15.358795
BYN 3.608812
BYR 21480.619234
BZD 2.215094
CAD 1.559263
CDF 3148.664634
CHF 0.944431
CLF 0.02729
CLP 1047.223301
CNY 7.980215
CNH 7.994999
COP 4582.945323
CRC 557.847278
CUC 1.09595
CUP 29.042674
CVE 110.234821
CZK 25.256829
DJF 196.376238
DKK 7.461451
DOP 69.640934
DZD 146.03502
EGP 55.406831
ERN 16.439249
ETB 145.347308
FJD 2.537019
FKP 0.847795
GBP 0.850992
GEL 3.01429
GGP 0.847795
GHS 16.970527
GIP 0.847795
GMD 78.997119
GNF 9480.074229
GTQ 8.45127
GYD 228.536272
HKD 8.520633
HNL 28.038338
HRK 7.531044
HTG 143.530764
HUF 404.54591
IDR 18346.949665
ILS 4.100568
IMP 0.847795
INR 93.650132
IQD 1430.891791
IRR 46360.405806
ISK 144.204462
JEP 0.847795
JMD 172.42419
JOD 0.777072
JPY 161.061946
KES 141.527433
KGS 95.002298
KHR 4365.330633
KMF 489.529208
KPW 986.361205
KRW 1599.015607
KWD 0.337157
KYD 0.910826
KZT 556.162432
LAK 23685.841231
LBP 98372.711411
LKR 324.07413
LRD 218.985421
LSL 20.902803
LTL 3.236056
LVL 0.66293
LYD 5.289988
MAD 10.429326
MDL 19.551233
MGA 5069.578931
MKD 61.05679
MMK 2300.919896
MNT 3846.361639
MOP 8.775473
MRU 43.593447
MUR 49.000806
MVR 16.923331
MWK 1897.317993
MXN 22.386696
MYR 4.861215
MZN 70.003894
NAD 20.902803
NGN 1681.066767
NIO 40.290501
NOK 11.790932
NPR 149.910449
NZD 1.95777
OMR 0.421946
PAB 1.09595
PEN 4.037053
PGK 4.46999
PHP 62.764717
PKR 306.904853
PLN 4.245513
PYG 8757.469729
QAR 3.989667
RON 4.952931
RSD 116.586887
RUB 93.840941
RWF 1555.449869
SAR 4.110221
SBD 9.312612
SCR 15.97682
SDG 658.021292
SEK 10.947921
SGD 1.470849
SHP 0.861245
SLE 24.933268
SLL 22981.523891
SOS 624.324825
SRD 40.248477
STD 22683.951476
SVC 9.589967
SYP 14249.994157
SZL 20.902803
THB 37.792726
TJS 11.899889
TMT 3.833642
TND 3.357047
TOP 2.638671
TRY 41.641737
TTD 7.422798
TWD 36.332658
TZS 2923.758392
UAH 45.158896
UGX 4009.400205
USD 1.09595
UYU 46.167964
UZS 14171.813622
VES 77.086835
VND 28252.54745
VUV 134.896075
WST 3.078778
XAF 652.705611
XAG 0.037037
XAU 0.000361
XCD 2.966325
XDR 0.817067
XOF 652.705611
XPF 119.331742
YER 269.409315
ZAR 20.929909
ZMK 9864.868719
ZMW 30.636217
ZWL 352.89544
  • RBGPF

    69.0200

    69.02

    +100%

  • SCS

    -0.0600

    10.68

    -0.56%

  • BCC

    0.8100

    95.44

    +0.85%

  • GSK

    -2.4800

    36.53

    -6.79%

  • CMSD

    0.1600

    22.83

    +0.7%

  • RELX

    -3.2800

    48.16

    -6.81%

  • NGG

    -3.4600

    65.93

    -5.25%

  • CMSC

    0.0300

    22.29

    +0.13%

  • RIO

    -3.7600

    54.67

    -6.88%

  • JRI

    -0.8600

    11.96

    -7.19%

  • AZN

    -5.4600

    68.46

    -7.98%

  • BTI

    -2.0600

    39.86

    -5.17%

  • VOD

    -0.8700

    8.5

    -10.24%

  • RYCEF

    -1.5500

    8.25

    -18.79%

  • BCE

    0.0500

    22.71

    +0.22%

  • BP

    -2.9600

    28.38

    -10.43%

UK unemployment dips but wages hit by inflation
UK unemployment dips but wages hit by inflation / Photo: JUSTIN TALLIS - AFP/File

UK unemployment dips but wages hit by inflation

Britain's unemployment rate has fallen further to a near five-decade low, official data showed Tuesday, but the value of wages continues to erode as inflation soars.

Text size:

The unemployment rate eased to 3.7 percent in the three months to the end of March, the Office for National Statistics (ONS) said in a statement, sending the pound rising against the dollar on expectations of another interest rate hike.

That was the lowest level in more than 47 years and compared with a rate of 3.8 percent in the quarter to the end of February.

Bank of England (BoE) governor Andrew Bailey on Monday warned that fallout from surging prices driven by the Ukraine war would cause unemployment to increase.

He described as "apocalyptic" the situation surrounding soaring food costs -- which he said were fuelled by major wheat and cooking oil producer Ukraine finding itself unable to export its goods.

Addressing British MPs, Bailey spoke also of a "very real income shock" coming from surging energy and food prices.

While average wages are rising in the UK, the ONS on Tuesday said they continued to sink in real terms as Britain, like other countries, faces runaway inflation.

The pound on Tuesday rallied 1.3 percent to $1.2480 as traders bet that soaring inflation, lifted in part by UK wage rises, would force the BoE to raise interest rates further, despite growing fears of recession.

"There continued to be a mixed picture for the labour market," said Darren Morgan, ONS director of economic statistics.

Total employment remained below its pre-pandemic level, with job vacancies at a record-high of almost 1.3 million at the end of April.

"Indeed, with the latest fall in unemployment to its lowest rate since 1974, there were actually fewer unemployed people than job vacancies for the first time since records began," Morgan said.

While companies struggle to fill posts after the pandemic caused people to change careers, Morgan noted that since the outbreak of Covid, about half a million more people in the UK "have completely disengaged from the labour market".

For those in work, regular earnings excluding bonuses were "falling sharply in real terms", he added.

- 'Unemployment to rise' -

Bailey on Monday said "the main driver of inflation and what brings it down is the very big, real income shock which is coming from outside forces and, particularly, energy prices and global goods prices.

"That will have an impact on domestic demand and it will dampen activity, and I'm afraid it looks like it will increase unemployment."

He described inflation fallout from the war in Ukraine as "a major worry" for Britain and the developing world.

"Sorry for being apocalyptic but that is a major concern," Bailey said.

He spoke after official data last week showed Britain's economy shrank in March on fallout from soaring inflation, increasing the prospect of the country falling into recession.

Earlier this month, the BoE warned that Britain risks falling into recession with UK inflation expected to top 10 percent, a four-decade high, by the end of the year.

It came as the central bank raised its main interest rate by a quarter-point to one percent to tackle rocketing prices.

That was the fourth straight increase by the BoE, while its key rate now stands at the highest level since the global financial crisis in 2009.

Raised rates have lifted borrowing costs for consumers and businesses, further impacting spending.

L.Zimmermann--NZN