Unemployment fallen ‘unexpectedly’ while wage growth continues to slow, new ONS data reveals, with observers saying latest figures highlight the difficulty facing the new government in tackling economic inactivity.
The UK labour market continues to show “signs of gradual cooling” as vacancies fall, despite unemployment also marginally falling and wage growth continuing to slow, according to data released this morning by the Office for National Statistics.
According to August’s Labour market overview vacancies in the UK fell by 26,000 in the May-July quarter to 884,000 for the 25th consecutive period, but remain higher than pre-pandemic levels.
The unemployment rate was lower than expected a year ago and fell to 4.2 per cent at the end of June, down from 4.4 per cent the previous quarter. While the employment rate for those aged 16 to 64 was estimated at 74.5 per cent in the April-June quarter, the ONS said it remained lower than a year ago but increased in the most recent quarter.
However, a pre-employment programmes for hospitality, led by UKHospitality and the Department for Work and Pensions, working together with training providers and businesses are helping people currently unemployed into new roles in hospitality.
The pilot delivered an 85% completion rate, with 80% of those finding employed in the sector.
Kate Nicholls, Chief Executive of UKHospitality, said:
“With the number of economically inactive increasing, the government should look to hospitality as a sector that has a track record of helping people of varied ages, backgrounds and skillsets into employment.
“Our skills pilot with the Department of Work and Pensions was designed specifically to help those not working into new jobs and it was incredibly effective, with eight in 10 successful participants securing a job.
“A permanent rollout of that pilot could be transformational in helping people into work and would allow hospitality to help the government deliver its target of an 80% employment rate.
“Hospitality provides jobs for everyone, and this scheme can help get people back into work, as well as bearing down on persistent vacancies in the sector.”
