UK’s unemployment rate fell slightly to 4% in August

The United Kingdom (UK) says its unemployment rate dropped to 4 percent between June and August 2024.

In a report on Tuesday, the UK’s Office for National Statistics (ONS) said the country’s unemployment rate dropped from 4.1 percent in the previous quarter.

The office said UK’s employment rate rose to 75 percent from the 74.8 percent previously reported.

The report said the number of people employed in the region surged by 373,000 in the three months to August 2024, accelerating from a 265,000 increase recorded in the previous period and surpassing market forecasts of a 250 thousand rise.

However, the ONS report said the economic activity rate for those aged 16 to 64 was estimated at 21.38 percent within the review period — a decrease from the previous quarter.

On an annual basis, the number of people employed increased by 344,000, majorly due to a rise in full-time employment, according to the UK office.

The ONS also average weekly earnings — including bonuses in the UK — rose by 3.8 percent year-on-year to £693/ per week in the quarter under review.

The statistics office added that annual growth in employees’ average regular earnings dropped to 4.9 percent — the lowest level in more than two years.

In February, the UK’s economy entered a recession as its gross domestic product (GDP) fell by 0.3 percent in December 2023.

On June 19, the ONS said the nation’s inflation decreased from 2.3 percent in April to 2 percent in July.

The UK, on June 28, was exited recession and returned to growth in Q1 2024, recording a faster growth rate in Q2 2024.