The UK economy has improved somewhat since the Brexit vote, but many businesses are still struggling, according to a new report.
The Office for National Statistics (ONS) released a report which showed that the UK’s economy has grown by 2.6 per cent in the three months after the vote, compared to the previous quarter.
However, there were signs that the recovery has not yet been completed, with the number of people claiming Jobseeker’s Allowance (JSA) falling by 7,000.
Despite the improved results, the ONS said that jobs growth in June was less than the 3.5 per cent predicted by economists.
The number of jobs created in the quarter was slightly less than what was forecast by economists, which means that there were fewer jobs created overall than expected.
The report also showed that overall employment grew by 0.3 per cent, but this was not enough to keep pace with the growth of the population.
“Although employment has been on a slow recovery, the economy has managed to expand by more than expected, while unemployment is still well above its pre-referendum peak,” the ONSS said.
“The UK economy is recovering strongly after the Brexit referendum, and with the unemployment rate now below its prereferendums peak, the UK can now be confident that its economic recovery will continue.”
The ONS has also been forecasting the unemployment rates for the next two months, which is a better than expected reading as unemployment is expected to peak in the coming weeks.
In addition, the jobless rate is forecast to be at a record high of 7.2 per cent by March 2019, up from the 6.4 per cent forecast by the Office for Budget Responsibility (OBR).
The ONSP’s chief economist Andrew Haldane said the fall in unemployment would be welcome news.
“With the unemployment recovery having been so swift, it has been hard for many businesses to re-establish their businesses after the UK voted to leave the EU,” he said.”[The ONSS] report is very encouraging as a sign of economic strength and growth.
It is likely to spur confidence and investment.”
The fall in jobless is also good news for businesses, which were hoping for a better quarter.
“For many, including many small and medium-sized enterprises, the announcement of a rate cut in April 2016 will have been a huge shock,” said John Taylor, chief executive of the British Chambers of Commerce.
“But as the economy slowly recovers, it is encouraging that the ONSP report is now showing the economy is now able to recover quickly and recover quickly.
The UK’s recovery has been slow, but it is now moving in the right direction.”Read more: