UK unemployment rate at six-year low, wages climbing up

The unemployment rate in the UK has dropped to six-year low and wages are climbing up, according to official data released on Wednesday.

The UK is gaining jobs at the fastest rate in Europe.

The Office for National Statistics (ONS) said that the British unemployment rate now stands at 5.8% of the adult working population. There are 30.8 million people in work and the number of people out of work dropped by 58,000 to 1.91 million.

Average earnings excluding bonuses gained 1.8% in the September to November period, from a year earlier.

The data revealed that south-east England has the highest rate of employment, at 76.6%, while Wales had the lowest, at 68.7%.

North-east England had the highest unemployment rate, at 8.5%, while south-west England had the lowest unemployment rate, at 4.4%.

Economists have also said that there will be record-low borrowing costs this year, as the Bank of England unanimously voted to hold interest rates at 0.50 percent.

The economy has certainly lifted and David Cameron is using the data as evidence that his long-term economic plan is working.

The Conservatives have now placed the performance in the British economy at the heart of their campaign.

Mr Cameron said:

“This is another strong set of figures showing more people in work, showing our unemployment rate in Britain is now around half the level in the eurozone and of course behind these figures lie real stories of people who have been able to find a job, to get work and to provide the security and stability for themselves and their families that I want for everyone in this country and it demonstrates that our long-term economic plan is working.”

“Nine out of 10 of the jobs that have been created in the last year are full-time jobs and we’re helping every family by cutting their taxes and making sure people can earn £10,000 before they pay any income tax at all. With an economy that is growing, a long-term plan that is working, with more and more people able to find work, I believe we are delivering the stability and security for families that I want for everyone in our country.”

The Centre for Economics and Business Research said:

“Earnings growth is continuing to pick up. Average regular pay over the three months to November was 1.8% higher than a year ago, the fastest rate of pay growth since 2012. With inflation tumbling and in our view likely to veer into negative territory over the coming months as prices for food, energy and transport fall, Cebr expects living standards to rise significantly in 2015.”