UK employment level falls to record low; labour shortage persists

UK unemployment fell to a record low, according to government data even as wages continued to go down with rising inflation.

The employment rate in the UK was below the pre-pandemic level even as job vacancies reached 1.3 million in April, the latest government data showed.

The employment rate was the lowest since 1974 in Britain even as companies struggle to fill posts after the lockdown. Data showed at least half a million people have "disengaged from the labour market".

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The government data showed regular earnings have been declining in "real terms" as Britain battles a disengaged labour market. The UK is also facing a shortage of workers amid the pandemic with people leaving the labour market.

There has been pressure on the Bank of England to increase interest rates. The pound surged against the dollar on Tuesday as the UK jobs data was released. The Steling rose 1.2 per cent to $1.2468.

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Prime Minister Boris Johnson had said earlier that government jobs will be axed as reports claimed up to 91,000 civil services jobs could be done away with in a cost-cutting move.

Rees-Mogg, the minister for Brexit opportunities and government efficiency informed that upto 38,000 people leave the civil service every year even as the UK government is seeking to ensure people execute their roles efficiently. 

(With inputs from Agencies)

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