By Denis Sheehan, Publisher, H&C News: Lowest unemployment since 1974 alongside rising inflation requires government intervention.
The unemployment rate in the UK is at its lowest since 1974, at the same time that the rate of inflation continues to stay ahead of pay rises.
The numbers released today from the Office for National Statistics show that regular pay, excluding bonuses rose by 4.2% per year in the three months to March. This sees basic pay in real terms is falling due to CPI inflation hitting 7% in March, predictions for April are that it will reach 9% in April.
Some positives can be seen from a 7% rise in total pay, where bonuses increase some pay packets overall.
The jobs report at the same time shows the rate of unemployment fell from 3.8% to 3.7%, this is the lowest seen in the labour market since 1974.
These figures add further inflationary pressure on the hospitality industry, currently quoting vacancy levels requiring circa 150,000 jobs needing to be filled. With falling numbers of people available to work, and higher pay requirements, many hospitality businesses are and will continue being presented with Hobson’s choice, pay or go without.
This unique labour market position comes alongside the deepening cost of living crisis that across the industry will see footfall reduce.
Yesterday, Bank of England governor, Andrew Bailey in a select committee appearance told MPs that rising food prices, at a time when supplies of wheat and cooking oil are being squeezed due to the war in Ukraine, was another major issue forewarning them: “I am going to sound rather apocalyptic about”.
It is now being widely reported that the cabinet are blaming the Bank of England for much of the economic woes facing the electorate right now.
With no sign of organic growth in the UK economy, government should stop criticising everyone else and intervene through investment to stimulate the economy.