Unemployment is at its lowest since 1975, sowhy do people feel worse off? | Larry Elliott

Low wage growth and the gig economy have made the labour market look better on paper than it feels in the pocket

Britain looks like a full employment economy. A bigger slice of the population is in work than at any time since modern records began. The unemployment rate is at its lowest since 1975. There are hundreds of thousands of job vacancies.

But Britain doesn't feel like a full employment economy. When the jobless rate was this low in previous economic cycles, wages were rising because employers were competing for scarce labour. Firms were investing in new capital equipment because workers were becoming more expensive. Productivity was increasing.

Related: UK faces pay squeeze as unemployment rate sinks to 42-year low