More job vacancies than jobless


The January-March unemployment rate fell by 0.3 percentage points on the quarter to 3.7% (officially, 1.257 million). For the first time since records began, there are fewer unemployed people than job vacancies which hit a new record (1.295 million). 


As official unemployment fell, there were 121,000 more employees on payroll, another new record at 29.5 million. Total employment (including self-employed people) is still below pre-pandemic levels while for those in work, employee earnings are not keeping pace with the cost of living. 


Including bonus payments, earnings were up by 7.0% (January-March average). 


But regular earnings growth is much lower at 4.2% (the latest three-month average). That’s compared with early 2021 when there were 4.6 million on furlough (which has had a “small” effect on the figures).


Sectoral differences in pay growth are stark: up by 8.2% in the private sector but only 1.6% in the public sector. Finance and business services showed the largest growth rate (10.7%), partly because of the sector’s bonus payments. 


There are disparities in regular earnings growth too: 5.7% in finance and business services and 6.4% in wholesale, retail, hotels and restaurants, but only 2.6% in manufacturing and 1.8% in the public sector.