Unemployment at lowest rate in nearly 50 years

Unemployment rates are at their lowest level in nearly 50 years, the latest official figures show. 

The rate fell to 3.5% in the three months to August according to the Office for National Statistics (ONS), the lowest since 1974. 

But the squeeze on pay remains, with rises in regular wages failing to keep up with the cost of living crisis. 

When the rise is taken into account, the value of regular pay fell by 2.9%, the ONS said. 

The regular pay – excluding bonuses – grew at an annual rate of 5.4% in the June to August period. 

It’s the strongest growth in regular pay seen outside the pandemic period, but pay rises are still lagging behind inflation – the rate at which prices rise – which currently stands at 9.9%. 

The estimated number of vacancies in the three months to September fell by 46,000 to 1,246,000, which is the largest fall since mid-2020 during the Covid pandemic.