United Kingdom: Labor market dynamics stay healthy
According to the ONS, in April–June the unemployment rate registered 3.8%, unchanged from the previous rolling quarter and close to its pre-pandemic level, while job vacancies eased in the three months to July but were still at a historically high level. Moreover, employment rose by 73,000 in July from June. That said, total earnings fell 2.5% year on year in real terms in the three months to June, due to surging inflation.
The latest data suggests the labor market is still in good shape. However, the fall in vacancies is a sign that the market is gradually losing steam, as the economic panorama grows more downbeat. Over the remainder of 2022, the unemployment rate is forecast to remain low by historical standards at close to 4%, before rising in 2023.