The level of employment in the United Kingdom has reached an all-time low; a labor shortage persists

*Paromita Das

According to government data, UK unemployment has reached a new low, even as wages continue to fall in response to rising inflation.

According to the most recent government data, the employment rate in the UK was lower than it was before the pandemic, despite the fact that job vacancies reached 1.3 million in April.

Even as businesses struggled to fill positions following the lockdown, Britain’s employment rate was at its lowest since 1974. According to data, at least 500,000 people have “disengaged from the labour market.”
According to government data, regular earnings have been declining in “real terms” as Britain struggles with a disengaged labor market. The UK is also facing a labor shortage as a result of the pandemic, with people leaving the labor force.

The Bank of England has been under pressure to raise interest rates. The pound rose against the dollar on Tuesday as UK employment data was released. The Steling gained 1.2% to $1.2468.

Prime Minister Boris Johnson previously stated that government jobs would be cut, citing reports that up to 91,000 civil service jobs could be eliminated in a cost-cutting move.
According to Rees-Mogg, the minister for Brexit opportunities and government efficiency, up to 38,000 people leave the civil service each year, despite the UK government’s efforts to ensure people perform their roles efficiently.