People walk past a branch of Jobcentre Plus, a government run employment support and benefits agency, in Hackney, London, Britain, August 6, 2020.

Britain’s jobless rate hit its lowest since 1974 but the drop was due mostly to a fall in the size of the workforce and there were other signs that the country’s jobs boom is petering out, adding to the Bank of England’s inflation headache.

The unemployment rate sank to 3.6% in the three months to July, the Office for National Statistics said. Economists polled by Reuters had expected it to hold at 3.8%.

We would expect a more visible impact on the jobs market over the next few months, but the government’s newly announced pledge to cap corporate energy bills as well as households should help avoid a sharp rise in unemployment this winter,” Smith said.

New Prime Minister Liz Truss announced last week a cap on soaring energy price.

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