UK living standards face squeeze despite strong jobs market

Analysis: Higher prices, taxes and energy costs will bring gloom despite low level of unemployment

Demand for workers is strong as the economy emerges from two years of pandemic-induced disruption. The supply of workers has been reduced by an increase in long-term sickness affecting mainly the over 50 age group.

As a result, there is enough upward pressure on pay to persuade the Bank of England to continue raising interest rates, but the big squeeze on living standards has begun.

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Downing St was repeatedly warned over Boris Johnson’s misleading jobs claims

Statistics watchdog wrote to the PM about ‘selective use of data’ after statement about number of people in work

Government officials were warned repeatedly about making misleading claims about job figures before the official statistics watchdog reprimanded Boris Johnson over the matter.

Ed Humpherson, the director general of the UK Statistics Authority (UKSA), said there had been “a series of informal discussions” before the regulator took the “unusual” step of issuing public rebukes to No 10 over the same issue twice last month.

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Generation X are heavy, risky drinkers. Will anything ever persuade us to stop?

Alcohol’s allure was powerful when we were growing up and those born after us consume far less. Now booze is falling out of fashion, is it time to assess old habits?

My first job in journalism was editing a free magazine called Rasp. In 1995, we ran a competition for a year’s supply of Two Dogs lemon brew, the Australian alcopop. Two Dogs tried to send us 365 bottles, and I negotiated them up to 1,000, indignant that a bottle a day could constitute a “supply”. It is the only time I’ve ever played hardball. Nobody entered the competition because we didn’t have any readers, and nor did we have any staff. The two of us, me and the designer, drank the whole lot in the space of two months. A constant drip feed of 4.5% ABV, all day. If anybody asked – there was a much larger team upstairs running TNT, a freesheet for expat Australians – we’d say it was a British tradition, going back to medieval times, when workers would sip ale because of the contaminated water supply. “But medieval ale would have been more like 0.5%,” they might have protested, except they were also constantly drunk, and at lunchtime we’d all go to the pub, 60 people in crocodile formation marching down the street, like a misbegotten nursery outing.

So the cliche of the drunken journalist happens to be true, but in the early 90s it was also true of teachers. Dave Lawrence, 56, co-author of Scarred for Life, of which more shortly, remembers his teacher training: “There was a pub across the road and at lunchtime, all the teachers would head over there, and all afternoon they would reek of booze.” It wasn’t really sectoral – this was just generation X. Colin Angus, a senior research fellow in the Sheffield Alcohol Research Group, is 39. He’s not generation X, which is usually defined as those born between 1965 and 1980. But in his pre-academic career in electrical wholesaling, “Everyone was always talking about the good old days of long, boozy lunches.”

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UK food worker shortages push prices up and risk Christmas turkey supplies

Dearth of delivery drivers, abattoir staff and fruit pickers caused by Covid and Brexit are fuelling wage rises with 5% hike in prices forecast

Food prices could rise by about 5% by the autumn – and turkeys and pigs in blankets could be in short supply this Christmas – as shortages of delivery drivers, abattoir staff and other workers drive up pay and other costs.

Industry insiders say that pay for lorry drivers and other supply chain workers, including abbatoir workers, plus vegetable and fruit pickers and packers have all risen because of difficulties in finding sufficient staff.

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Covid deepens south and north of England inequalities, study finds

IPPR North report reveals few signs of government’s levelling up agenda becoming reality

Covid-19 has deepened inequalities between the north and south of England, with little sign of the government’s “levelling up” agenda becoming a reality, a thinktank has warned, in an urgent “wake-up call” to Boris Johnson.

The north is experiencing levels of unemployment not seen since 1994, with areas put under the strictest tier 3 restrictions among the worst affected, IPPR North said in its annual health-check of the economy of the north of England.

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Tale of two Cities: FTSE 100 rises despite economic collapse

Surge in shares contrasts with Covid-related downturn and growing unemployment

The economic collapse in Britain during the second quarter of 2020 was the most brutal on record. Unemployment is forecast by the Bank of England to soar to 2.5m by Christmas. The Brexit cliff edge approaches. Yet in the City, the FTSE 100 has been on the up.

Never has the disconnect between financial trading and economic fundamentals appeared so extreme. What explains surging asset prices (the FTSE jumped 2% on the same day it was revealed the economy had slumped by 20%) when the outlook for many workers is so grim?

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What will coronavirus mean for the British economy?

As the UK faces what may be its worst ever recession, we begin a monthly series exploring the financial shock to business and living standards

One month after a national lockdown was declared in an attempt to limit the spread of Covid-19, it is clear that Britain is heading for the deepest recession in living memory.

Boris Johnson’s government launched unprecedented restrictions on 23 March, telling the British public that they must stay at home and bringing life as the nation knew it to an abrupt halt.

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UK wage growth hits 11-year high as self-employment total surges – business live

British worker are getting the biggest pay rises in a decade, as jobless rate remains at 44-year low. But the market may be cooling....

New @ONS stats show that:

- the employment level is at a record high
- there are 3.7m more people in work than in 2010
- wages have grown faster than inflation for almost a year
- female unemployment has fallen to a new record low of 3.6% pic.twitter.com/V9C5NMXW9l

Andy Bruce of Reuters has also spotted that rising self-employment is making up for a drop in the number of employed workers.

Cause for concern?

That there was any employment growth at all in 3 months to May is down to a hefty increase in self-employment.

Employee jobs declined at fastest rate since 2011. pic.twitter.com/cg05f02Az2

Along these lines, looks clear that vacancies have peaked already. pic.twitter.com/t06diHVMRn

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