UK unemployment is as low as 1975 – but why aren't wages rising?
by Larry Elliott Economics editor from on (#2FY8V)
Falling pay growth shows how the balance of power has shifted in the past four decades away from workers
The last time Britain's unemployment rate was lower than it is today was in the summer of 1975. For those whose memories don't stretch that far back it was the time of the UK's first referendum on EU membership, Harold Wilson was prime minister and inflation was at at postwar peak of more than 25%.
The contrast with today's labour market is stark. Joblessness stands at 4.7%, a level that many economists would consider close to full employment, yet there is not the glimmer of the upward pressure on wages that was so evident in the mid-70s.
Related: UK unemployment falls to joint lowest rate since 1975 but wages stall
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