UK unemployment fell in Q2 2016

UK unemployment fell in Q2 2016 just before the vote about Brexit. The unemployed persons decreased by 52,000 to 1.64 million people and the unemployment rate remains to 4.9%. The number of people applying for compensation in July 2016 (the first month after Brexit referendum) is 763,600 people, which is 8,600 less than June. The salaries without bonuses grew by 2.3% in Q2 2016, while growth of wages with bonuses is 2.4%.

The strong trend in the labor market continued in the second quarter of 2016 with a new record level of employment. The total number of unemployed people is now at its lowest level in eight years, and the unemployment rate is smallest since 2005, according to the statistical office.

The employment rate reached a record high of 74.5%, with 31.8 million working people in the three months ending June. This is with 172,000 more than in the previous quarter.

British economy is showing remarkable resistance before British referendum on EU membership and immediately after the vote to leave. However, it is too early to form conclusions from this. It remains a likely weakening economic activity and increased uncertainty take toll on the labor market in the coming months.

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