Unemployment figures increase pressure on BoE as wages lag inflation

29.5m employees in UK

clock • 5 min read

The UK’s unemployment rate continued to fall in December 2021, but commentators have warned that the figures should be “taken with a pinch of salt”, while adding further pressure on the Bank of England.

The latest data from the Office for National Statistics estimates that there were 29.5m employees in the UK in December, an increase of 184,000 on the revised November 2021 level and up 409,000 on February 2020 pre-Covid. The UK's unemployment rate fell 0.4 percentage points to 4.1% on the quarter, but economic inactivity rose. The data, however, focuses on the unemployment rate for September to November - before the Bank of England hiked interest rates in response to soaring UK inflation, as well as the onset of Omicron, which has had a widespread impact on businesses and services ac...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Rathbones looks for growth after year of internal focus during Investec merger

Rathbones looks for growth after year of internal focus during Investec merger

Growth in funds under management and administration to £115.6bn

Eve Maddock-Jones
clock 15 January 2026 • 3 min read
Brooks Macdonald returns to positive flows in Q2

Brooks Macdonald returns to positive flows in Q2

Funds under management/advice now top £20bn

Jenna Brown
clock 15 January 2026 • 2 min read
PA Awards 2026: Multi-asset shortlists revealed

PA Awards 2026: Multi-asset shortlists revealed

Championing excellence

Professional Adviser
clock 14 January 2026 • 2 min read