The real rate of worklessness is quadruple the official rate

Aside Posted on

Source: The real rate of worklessness is quadruple the official rate

unemployment wages

So what’s going on?

Why does Britain have no wage inflation, if the labour market is so tight?

The answer is unemployment is not really that low. In reality, about 21.5% of British workers are either officially unemployed, inactive, or employed part-time even though they really want full-time work. (The ONS has a chapter on that here.) Some of those people — parents with newborns, university students — may not want jobs right now, but they will want jobs soon. Even when you take those out of the equation, the true rate of people without jobs who want them looks like this, according to analyst Samuel Tombs at Pantheon Economics: