Unemployment for Kent in May 2022 continues to fall but inflation outstrips wage rises

Unemployment is continuing to fall across all but two districts in the county - but soaring inflation is outstripping wage rises as the cost-of-living crisis continues to bite.

In the latest figures from the Office for National Statistics (ONS), the number of people claiming Universal Credit in May fell by another 1,015 to 40,430 on April's adjusted figures.

Those claiming Universal Credit dropped again last month - but wage hikes are lagging behind inflation
Those claiming Universal Credit dropped again last month - but wage hikes are lagging behind inflation

That equates to around 3.6% of the working population. The national figure for the last three months put the unemployment rate at 3.8%.

But while there remain jobs in abundance - nationally there are a record 1.3million vacancies - pay rises are falling to keep track of soaring costs, spearheaded by the sharp rise in energy and fuel costs. The ONS data showed that nationally, in the three months to April, regular pay excluding bonuses fell 3% after the impact of inflation – the biggest fall since November 2011 – despite a 4.2% rise in average earnings

Locally, claimant counts were down in all areas with the exception of Tonbridge & Malling which saw a small rise of 20 to 1,755. However, it remains one of the districts with the lowest percentage of unemployment among those of working age at just 2.2%. It is beaten only by Sevenoaks on 2.1%.

Dartford was unchanged month-on-month - equating to 3% of the working population.

The biggest month-on-month percentage falls were in Folkestone & Hythe, which saw a 4.3% drop; Maidstone, down 4.2%; and Swale, down 4%.

Thanet saw another decline but remains the district with the highest rate of claims at 6.3%. Gravesham is next on 4.3% followed by Medway on 4.2%.

Chancellor of the Exchequer, Rishi Sunak said: “Today’s stats show our jobs market remains robust with redundancies at an all time low.

“Helping people into work is the best way to support families in the long term, and we are continuing to support people into new and better jobs.

“We are also providing immediate help with rising prices - 8m of the most vulnerable families will receive at least £1,200 of direct payments this year, with all families receiving £400.”

However, Jo James of the Kent Invicta Chamber of Commerce, which represents firms across the county, warned: "An increasingly tight labour market means it’s much harder for employers to fill job vacancies – impacting on their ability to operate normally and retain skills in the business.

Chancellor Rishi Sunak said he was pleased with the latest figures
Chancellor Rishi Sunak said he was pleased with the latest figures

“The further rise in the employment rate, together with drop in the unemployment rate are good news but they also reflect how little room for manoeuvre there is for unfilled vacancies on the ground.

“With a new record set for the number of vacancies, and no easy way to fill them for many companies, labour shortages are likely to continue to damage the UK’s growth prospects.

“Despite recruitment difficulties, the damage to firms’ finances from soaring inflation and rising national insurance will limit the extent to which wages can continue rising.

“We need to find ways to bring people back into the UK labour market. Flexible working practices, rapid re-training opportunities and a focus on workplace health can support many economically inactive people to return to the workplace.

“But for some roles, where there is clear evidence of a national shortage of skills and labour, firms need access to people, at all skill levels, from outside the UK. As well as issuing temporary and seasonal visas, the UK government needs to urgently review the Shortage Occupation List.”

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