Kent unemployment figures for August 2022 creep up - but remain below national average of 3.6%
Published: 15:16, 14 September 2022
Updated: 15:18, 14 September 2022
Unemployment figures in the county have crept up - but remain below the national average.
According to the latest figures from the Office for National Statistics, the number of people claiming Universal Credit in August across Kent and Medway rose slightly to 37,450 - an increase of 275 on July's adjusted figures.
It represents 3.3% of the county's total population.
Nationally, the unemployment rate for the three months to July fell to 3.6% - the lowest since May to July in 1974.
The figures come ahead of what is likely to be a challenging month for employers and households as energy costs rise again, fuelling continued high inflation.
A recent dip in petrol and diesel prices is being credited with a slight slowdown in the inflation rates - seeing the year-on-year increase in everyday goods and services rising 9.9% in August. In July the figure stood at 10.1%.
The Bank of England is tasked with keeping the figure to just 2%.
And despite Liz Truss confirming Government support in capping energy prices, many companies still face soaring costs as long-term contracts conclude. Add to that a dip in public spending - and it forms an equation likely to put some jobs in jeopardy.
Across Kent and Medway, only Ashford, Folkestone & Hythe, Thanet and Tonbridge & Malling saw a drop in claimants - although by no more than 10 in all cases.
All other areas saw a modest increase.
The district or borough with the highest number of unemployed, in terms of its population, remains Thanet at 5.8%. The next highest is Gravesham (4.1%) and Folkestone (3.9%).
The lowest remain the west Kent districts of Tonbridge & Malling (2%), Sevenoaks (2.1%) and Tunbridge Wells (2.3%).
Nationally, the latest figures for the three months to July reveal an increasingly significant number of what are known as those who are 'economically inactive' - namely those who do not have a job and are not seeking one.
That now stands at 21.7% - around nine million people - its highest level for more than five years. That figure was swollen around the time of the pandemic as many older workers opted for early retirement. It is also being put down to a rising number of long-term sick as well as students.
It has resulted in the recent conundrum of soaring job vacancies clashing head-on with record low unemployment.
However, there are signs that may be easing. The number of vacancies nationally saw a dip of 34,000 - the biggest quarterly fall in two years.
It still creates an uncomfortable position for many firms, however, who continue to struggle to recruit the staff they need - with candidates demanding high salaries because of the sparsity of options and the sharp rise in the cost of living.
Bank of England hawks will be worried that these shortages will continue to push up wage growth
The ONS added that total pay, including bonuses, lifted by 5.5% for the three-month period, falling by 3.6% with inflation taken into account.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the jobs figures were “grim”, showing “the recovery in employment has petered out”.
James Smith, at ING, added: “The number of workers classified as long-term sick has jumped dramatically in the past couple of months, and that’s one reason why firms are still struggling to source the staff they need.
“While worker demand has cooled, Bank of England hawks will be worried that these shortages will continue to push up wage growth.”
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Chris Britcher