london skyline

United Kingdom Unemployment September 2019

United Kingdom: Employment falls by most in four years in Q3 amid Brexit uncertainty

The unemployment rate edged down to 3.8% in July–September from 3.9% in the previous rolling quarter. Employment, however, contracted by 58,000, which, while less than had been expected, marked the largest registered quarterly decline since May 2015, with fewer part-time jobs largely to blame. Moreover, the number of job vacancies continued to decline and nominal wage growth lost steam in July–September, even though wage growth continued to outpace inflation. These figures indicate that political uncertainty is weighing on jobs data, trimming the momentum of a previously robust labor market.

Looking further ahead, the outcome of upcoming elections and how they will shape Brexit will have a key bearing on the evolution of the labor market. Commenting on the uncertain outlook for the labor market ahead, James Smith, an economist at ING, noted:

“The jury is still out on whether this merely reflects a jobs market that is no longer tightening, or whether it is something more serious. Either way, this raises some question marks over wage growth – a key pillar in the Bank of England’s hawkish rationale over recent years.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen