Unemployment continues to fall

Labour Market Statistics, September 2014

  • Comparing the estimates for May to July 2014 with those for February to April 2014, employment continued to rise and unemployment continued to fall. These changes continue the general direction of movement since late 2011/early 2012.
  • There were 30.61 million people in work. This was 74,000 more than for February to April 2014, the smallest quarterly increase since April to June 2013. Comparing May to July 2014 with a year earlier, there were 774,000 more people in work.
  • The proportion of people aged from 16 to 64 in work (the employment rate), was 73.0%, slightly higher than for February to April 2014 (72.9%) and higher than for a year earlier (71.6%).
  • There were 2.02 million unemployed people, 146,000 fewer than for February to April 2014 and 468,000 fewer than a year earlier. This is the largest annual fall in unemployment since 1988.
  • The unemployment rate continued to fall, reaching 6.2% for May to July 2014, the lowest since late 2008.
  • There were 8.93 million people aged from 16 to 64 who were out of work and not seeking or available to work (known as economically inactive). This was 114,000 more than for February to April 2014 but 31,000 fewer than for a year earlier.
  • The economic inactivity rate was 22.1%, higher than for February to April 2014 (21.8%) but lower than for a year earlier (22.3%)
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Household spending

Consumer Trends, Q2 2014

  • In Q2 2014, household spending (adjusted for inflation) grew by 0.6% (£1.5 billion).
  • The main contribution to growth can be seen in ‘Miscellaneous goods and services’ which has increased by 2.8% compared with Q1 2014. The largest negative contribution to growth can be seen in ‘Food and drink’ which has fallen by 0.9% compared with Q1 2014.
  • Household spending when compared with the same quarter a year ago has been rising each quarter since Q3 2011, it was 2.1% higher in Q2 2014, when compared with Q2 2013.
  • The current price value of household spending, which includes inflation, shows how much UK households spent. In Q2 2014 current price spending increased by 1.2% compared with Q1 2014, continuing the trend of positive quarterly growth since Q3 2009.
  • The household expenditure implied deflator grew by 0.6% in Q2 2014. Within household spending categories the ‘Miscellaneous goods and services’ implied deflator showed the largest increase in percentage terms, growing by 2.5% in Q2 2014.

UK economic growth revised upwards

Quarterly National Accounts, Q2 2014

  • UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.9% between Q1 2014 and Q2 2014, revised up 0.1 percentage points from the second estimate of GDP published on 15 August 2014.
  • Annual GDP in volume terms was estimated to have increased by 1.7% in 2013, compared with 2012, unrevised from the estimate published on 15 August 2014.
  • Between Q2 2013 and Q2 2014, GDP in volume terms increased by 3.2%, unrevised from the previously published estimate.
  • GDP in current prices was estimated to have increased by 1.9% between Q1 2014 and Q2 2014.
  • The peak to trough fall of the economic downturn in 2008/2009 is now estimated to be 6.0%. Previously this was estimated to be 7.2%.
  • In Q2 2014, GDP was estimated to have been 2.7% higher than the pre-economic downturn peak of Q1 2008, having first exceeded this peak in Q3 2013.
  • The household saving ratio was estimated to be 6.7% in Q2 2014
  • Real household disposable income increased by 2.2% between Q1 2014 and Q2 2014