The UK unemployment rate fell to its lowest level since 1974 in the first quarter of 2022, but experienced a large drop in real incomes due to soaring inflation.
The Office for National Statistics (ONS) reported the unemployment rate fell to 3.7% in the first three months of this year from 3.8% expected and previous readings.
Vacancies continue to rise to record-breaking as employers continue to struggle to find workers as hundreds of thousands of people who left jobs during the Covid-19 hit have chosen not to return.
Moreover, in line with price increases, average income excluding bonuses fell by 1.9% from the previous year thus becoming the largest decline since 2013.
With inflation exceeding 10% by the end of the year and tax increases by the government, consumers are facing an almost unprecedented decline in their real disposable income.
Some analysts say the impact of the fall could cause the economy to go into recession, raising questions about how far the Bank of England (BOE) will raise interest rates.
Following the publication, the pound rose higher to bounce back from a nearly 2 -year low it touched last week.
