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12 November 2019updated 26 Jul 2021 11:54am

The real reason for the UK’s record employment: we’re poorer

The boom in jobs and working hours reflects the fact that our living standards are worse than expected.

By Torsten Bell

Why are three million more of us working today in the UK than in 2008? How has our employment rate reached 76 per cent, when full employment before the crisis meant 73 per cent of us working? 

These are employment levels no one thought possible a decade ago (see graph below). There is almost no bigger change to our economy over the past decade than the jobs boom. And yet it is poorly understood.

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