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The UK’s unemployment rate has dropped unexpectedly, reaching an almost 50-year low.
3.5% of adults were looking for work in the three months through August, down from 3.6% the month before. The rate hasn’t been this low since 1974.
However, the number of people not looking for work due to long-term illness has hit a record high.
This comes as many firms are struggling to recruit, leading to concerns over labor shortages which is restricting company expansion.
Furthermore, the squeeze on pay remains, with rises in regular wages failing to keep up with the rising cost of living.
“The UK is facing the tightest labor market in years,” said David Bharier, head of research at the British Chambers of Commerce. “Shortages are holding back the ability of many businesses to service existing customers and grow.”
