UK Unemployment Falls, But Wage Growth and Labour Shortage Persist

Unexpected drop in jobless rate highlights economic resilience, yet concerns over wage inflation and labour market challenges remain.

UK unemployment rate fell to 4.2% in the three months to June, defying expectations of a rise.
Employment increased by 97,000, while economic inactivity also rose due to sickness and early retirement.
Wage growth slowed to 5.4%, the lowest in two years, but remains a concern for inflation.
Labour shortages continue, exacerbated by Brexit, long Covid, and early retirements.
Government plans to address labour market issues through welfare reforms, training, and mental health support.