Fall in Unemployment Yet to Translate to Higher Living Standards

According to economists, despite the unemployment rate falling to just 5.6 percent, consumers are not seeing this positive change reflected in their wages.

The rate for unemployment has dropped to its lowest level since 2008 but, according to official pre-election labour market figures, earnings growth has eased. The figures highlighted the UK's weak record on productivity and was further evidence that the recovery is yet to translate into higher living standards.

Chris Williamson, an economist at data provider Markit, said:

"The number of people in employment has risen to an all-time high, but the jobs boom and wider economic recovery are still not feeding through to households via higher wages.

"The lack of wage growth leaves the economy vulnerable to setbacks, especially as growth has once again become all-too dependent on consumer spending, which is in turn reliant on low inflation."

On the other hand, figures from the Office for National Statistics (ONS) showed more of the jobs being created were full-time work, contributing to the hope that job security is finally improving after years of part-time work and self-employment driving much of the UK's labour market recovery.

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