Maru Inplacement

More jobs than unemployment results in pressure for higher wages

17 May 2022

Story by
Johnny Swierczynski, Reporter

Unemployed

There are now more jobs than unemployed people in the UK for the first time since records began almost 50 years ago, according to the latest stats from the Office for National Statistics.

ONS stats vacancies May 22
Vacancies rose to a record 1,295,000 in February to April 2022, an increase of 33,700 from the previous quarter.
Source: Office for National Statistics

The latest stats also show that wages did not keep up with rising costs, which is only expected to get worse over the coming months with the food and fuel crisis.

In response to the latest ONS report, Chancellor Rishi Sunak said “I understand these are anxious times for people, but it’s reassuring that fewer people are out of work than was previously feared.

“We are helping them […] through tax cuts, changes to Universal Credit and support with household bills worth £22 billion this financial year.”

MP Neil O’Brien said in a Tweet earlier today “this is a remarkable result” saying that “Riski was right to wield the bazooka to fight unemployment”.

What we are experiencing right now, low unemployment in the market and high demand for labour, is known as a tight market, which places more pressure on wage increases.

Warwick Business School Professor Andrew Sentance said this is a “wake up call to the Monetary Policy Committee on how a tight labour market is now fuelling a wage-price spiral.”

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