Job vacancies in the UK hit a record high last month, with wages rising 7.4% between April and June, adding to long-term concerns about rising prices as companies charge consumers higher prices.
A strong rebound in the labor market was highlighted in data released Tuesday by the Office for National Statistics and this could add further inflationary pressure in the UK economy. According to some economists, this could lead to the central bank raising interest rates as early as May 2022.
The UK had a record average of 953,000 jobs in the three months to July – 168,000 more than in the first quarter of 2020 before the coronavirus restrictions were imposed.
In July alone, vacancies could hit more than one million for the first time, according to the ONS assistant national statistician for economic statistics, Jonathan Atow.
The number of job openings has increased across all industries, with arts, entertainment and hospitalitygro wing the fastest since all other social distancing restrictions were lifted in the UK on July 19.
“The world of work continues to recover strongly from the effects of the pandemic,” Athow’s statement said.
According to the ONS, unemployment fell 0.2 percentage point to 4.7%. Athov said there were no signs of layoffs starting to increase before the government’s pay-based holiday program ends at the end of next month.