Unemployment across the UK has fallen to its lowest level for more than a decade, new statistics have shown.
In the three months to November, the number of people out of work dropped to 1.68million – with 99,000 fewer jobseekers than during the previous quarter.
Chancellor George Osborne was delighted by the figures released by the Office for National Statistics (ONS) believing that they vindicate his long-term economic plan.
“Every new job means the security of a pay packet for a worker and their family,” he said.
Employment Minister Priti Patel was similarly buoyant, arguing that the latest data had got 2016 off to a fantastic start.
“In a further demonstration of the strength of the UK labour market, today’s figures show there are a record three-quarters of a million vacancies,” she said.
“We will build on this throughout the coming year – doubling childcare for working parents and introducing the new National Living Wage – ensuring that everyone has increased financial security and the opportunity to get on and succeed in life.”
But the good news was offset by the fact that wage growth is continuing to slow; the average weekly earnings, excluding bonuses, increased by just 1.9 per cent over the three month period.
This sluggish growth is likely to be an obstacle to the Bank of England increasing interest rates anytime soon.
The BoE’s governor Mark Carney ruled out any imminent change on Tuesday of this week.
“Last summer I said that a decision as to when to start raising Bank Rate would likely come into sharper relief around the turn of the year,” he told an audience at London’s Queen Mary University.
“Well, the year has turned and, in my view, the decision proved straightforward – now is not the time to raise interest rates.”