UK payrolls near pre-pandemic level, unemployment declines
The number of employees on British company payroll inched near its pre-pandemic level in July, while pay growth touched a record high despite some distortions caused by COVID-19 lockdowns.
Based on the data released by the Office for National Statistics on Tuesday, payrolls climbed 182,000 to 28.9 million in July, just 201,000 short of the figure reached before the COVID-19 pandemic struck in March 2020.
Meanwhile, the unemployment rate dropped to 4.7% in the three months to June, the lowest since the three months to August 2020.
The jobless rate was projected by economists to remain at 4.8 percent.
Finance Minister Rishi Sunak’s job subsidies bolstered Britain’s labor market. The incentive provided wages to 8.9 million jobs during the first lockdown in May 2020 before dropping to 1.9 million jobs by the end of June 2021. It will be terminated by the end of September.
Overall, the promising figures are seen to increase confidence in an economic recovery with less long-term damage than the economists initially feared.