Employment rate in the UK has reached a new record high – it now stands at 73.7%; furthermore the unemployment rate has also reduced to 5.3%. This is the lowest it has been since early 2008 and according to the latest figures from the Office for National statistics is reaching pre-recession levels.
In the second quarter of 2015 (April to June) the number of persons employed increased by 177,00, amounting to 31.21 million. This is the highest since comparable records began in 1971. In the following quarter (July to September) the number of unemployed persons reduced by 103,000 people.
Further data shows that there are a number of encouraging figures – more women are now in work, the number has increased by almost a million since 2010; youth employment for young people who have left full-time education has reached the highest level in more than a decade at 74.3%, and long-term employment has fallen to the lowest level in 6 years, 514,000, which is down 25%. Over the last year the average salary has grown by 3%.
Employment Minister Priti Patel has put this success down to the current government, which is delivering for hard-working people. There are 2 million more people in work since 2010 and the number of people on the main out of work benefits has reduced by a million since 2010, the unemployment rate being at its lowest in 7 years. According to Patel the aim is to create a higher wage, lower welfare society.
The national chairman of the Federation of Small Businesses (FSB), John Allan said that “The jobs market remains encouraging with steady growth in employment and wages, proving again the ability of the private sector, and especially small businesses, to create jobs.”
He also said that the upcoming Autumn Statement would be a key opportunity for the chancellor to reassure business and demonstrate that he is aware of the challenges that are being faced, and to maintain the positive momentum in the labour market.
The chief economist at the Institute of Directors (IOD), James Sproule stated, that as the employment rate is at an all-time high and the number of vacancies is nearing a post-crisis high, pay increases seem to be here to stay as a feature of the economy. This is due to the fact that confidence is growing and employees are pushing for salary increases. He commented, that Britain is fast approaching full employment and a danger exists that future salary growth will not be down to better corporate performance but rather competition for employees.
