- Howard Archer, chief U.K. and European economist at IHS Global Insights
The UK jobless rate dropped to the lowest level in seven years in August, while proportion of people in employment rose to the highest level since records began in the 1970s. The unemployment rate came in at 5.4% for the three months through August, compared with 5.5% in the three months to July, as the number of unemployed people dropped by 79,000 to 1,77 million. The Office for National Statistics reported employment surged by 140,000 over the period, increasing the number of people in work to 31.12 million. The employment rate also reached a record high of 73.6%. While the decline in consumer prices boosted consumers' purchasing power, Britons also enjoyed growth in wages, which rose 3%.
Last week, the International Monetary Fund upgraded its growth outlook for the UK, while revising downwards its expectations for the world's economy as a whole, due to concerns over emerging markets and China. The think-tank predicted British growth to be 2.5% this year, and 2.2% in 2016. In fact, the IMF highlighted the economy as a rare bright spot amid a dismal global outlook.
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