UK's unemployment reduces to lowest since 1974

UK Unemployment rate drops: The government said 3.6% of adults were out of work and looking for jobs in the three months through July.

Britain’s unemployment rate dropped to the lowest since 1974 as more people dropped out of the workforce.

UK Unemployment rate drops: UK PM Liz Truss smiles and waves.

The government said 3.6% of adults were out of work and looking for jobs in the three months through July, lower than the 3.8% pace in the previous months. Economists had expected no change.

The decline was driven by a sharp increase in the people classed as economically inactive, or not seeking jobs. A total of 194,000 people left the workforce over the period due to increases in long-term sickness and young people moving into education.

• Employment increased by 40,000 in July, less than the 125,000 economists had expected
• Real wages adjusted for inflation fell 2.8% in the quarter through July, slower than the decline in previous months
• Job vacancies dropped 34,000 from the previous quarter, the biggest decline since summer 2020.