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The latest data from the Office for National Statistics (ONS) shows that unemployment in the three months to February declined to 4.9%, down from 5.2%.
However, Liz McKeown, director of economic statistics at the ONS, commented: “Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies.”
The inactivity rate, which measures the proportion of people not looking for work, rose to 21% from 20.7%.
If more people are choosing not to seek employment, it may indicate limited opportunities or concerns about job quality. It is unclear whether this trend is linked to suggestions that Artificial Intelligence (AI) is reducing entry-level roles.
Overall, the improvement in the unemployment rate may not be as positive as it first appears.
