The rising cost of living crisis has prompted British workers to re-enter the labor market at the fastest rate since before the Covid-19 pandemic hit.
Most recently, the Office for National Statistics (ONS) reported a 296,000 increase in the number of people employed in the three months to May 2022, the biggest increase since the three months to August last year.
However, the UK unemployment rate remained unchanged at 3.8% over the same period, better than expected to rise slightly at 3.9%.
This increase was aided by the number of full -time employees which rose to a record high and was also followed by part -time employees.
Signs of continued strong hiring may boost the Bank of England’s (BOE) confidence to raise interest rates further next month.
Still, there are still no clear indications in the data that it might trigger the central bank’s move to raise rates by more than the 25 basis points it normally enforces.
Meanwhile, growth in wages continued to show an increase in the three months to May to 4.3% but represented the largest fall on record since 2001 when adjusted for the consumer price index measure of inflation.
The ONS reported growth in total salaries, including bonuses, slowing to 6.2% from 6.8%.
