UK unemployment falls by 146,000
17 September 2014
Unemployment in the UK has fallen to 2.02m, according to the latest figures released by the ONS.
Wed, 17 Sep 2014
Unemployment in the UK has fallen to 2.02m, according to the latest figures released by the ONS.
The unemployment rate at 6.2% was down at its lowest level since September to November 2008, roughly just before the onset of the global financial crisis.
Average weekly earnings, excluding bonuses, in May to July, rose by 0.7% from the same period a year earlier.
Over the year the number of unemployed had fallen by 468,000 – the largest annual fall in unemployment since 1988, according to the ONS.
Although the number of people in employment rose by 74,000 over the quarter, this was the smallest quarterly increase since the April to June quarter last year.
It was the first time in six years that the number of people claiming Jobseeker's Allowance had fallen below 1m.
Chancellor George Osborne tweeted: "Today's employment stats mark another step towards full employment. But still much more to do."
However, Labour’s shadow employment minister Stephen Timms was critical of the figures: “Pay excluding bonuses today is the lowest on record. Under this government wages after inflation have already fallen by over £1.6k a year since 2010."
Professional services company KPMG said the figures indicated a certain level of confidence among UK employers when it comes to recruitment but nervousness regarding the available skills in the market.
Bernard Brown, KPMG partner and head of business services, said: “Hot on the heels of OECD suggestions that our economy is expanding faster than any other G7 country, these latest figures give the clearest indication for some time that employers are prepared to spin the wheel of fortune and invest in new recruits. The question on candidates’ lips, however, will be what they can expect to earn.
“With another rise in the number of people finding work, recent headlines about potential job losses and companies falling into administration may come as a surprise to many. But they shouldn’t be dismissed as a blip. Now the economy is improving, companies and funders are more likely to take decisive action which, perhaps counter-intuitively to some, can lead to an acceleration in corporate insolvencies. There is some consolation, however, that the jobs market is now in a better position to absorb job losses caused by company administrations.”
The other concern, he added, was around the skills shortages at employers’ disposal, with “the conundrum of meeting immediate demand with employing the skills needed tomorrow that business will need to balance if economic growth is to continue”.
Ian Burke, director at totaljobs.com, said: “The government must ensure that the recovery benefits all sectors of society – including young people and those looking for work in sectors where wage growth remains low.”
Burke added that the figures, released a day before Scotland decides whether to remain part of the union, may be negatively impacted by the outcome of the referendum.
“Whatever the outcome, tomorrow’s referendum on Scottish independence will have significant consequences for UK employment as a whole and may well disrupt the steady fall in unemployment that we have been seeing for the last year.”
Andrew Hunter, co-founder of Adzuna, which searches websites and collates data, added: “Salaries have been stuck at a standstill for far too long, but there are now some signs that the wage malaise is beginning to lift.
“Advertised salaries grew for the first time since the recession in July, according to the latest Adzuna Jobs Report. Demand for skilled workers, alongside greater profits flowing into the balance sheets of employers, is providing the push needed to lift salaries out of their state of inertia.”
The unemployment rate at 6.2% was down at its lowest level since September to November 2008, roughly just before the onset of the global financial crisis.
Average weekly earnings, excluding bonuses, in May to July, rose by 0.7% from the same period a year earlier.
Over the year the number of unemployed had fallen by 468,000 – the largest annual fall in unemployment since 1988, according to the ONS.
Although the number of people in employment rose by 74,000 over the quarter, this was the smallest quarterly increase since the April to June quarter last year.
It was the first time in six years that the number of people claiming Jobseeker's Allowance had fallen below 1m.
Chancellor George Osborne tweeted: "Today's employment stats mark another step towards full employment. But still much more to do."
However, Labour’s shadow employment minister Stephen Timms was critical of the figures: “Pay excluding bonuses today is the lowest on record. Under this government wages after inflation have already fallen by over £1.6k a year since 2010."
Professional services company KPMG said the figures indicated a certain level of confidence among UK employers when it comes to recruitment but nervousness regarding the available skills in the market.
Bernard Brown, KPMG partner and head of business services, said: “Hot on the heels of OECD suggestions that our economy is expanding faster than any other G7 country, these latest figures give the clearest indication for some time that employers are prepared to spin the wheel of fortune and invest in new recruits. The question on candidates’ lips, however, will be what they can expect to earn.
“With another rise in the number of people finding work, recent headlines about potential job losses and companies falling into administration may come as a surprise to many. But they shouldn’t be dismissed as a blip. Now the economy is improving, companies and funders are more likely to take decisive action which, perhaps counter-intuitively to some, can lead to an acceleration in corporate insolvencies. There is some consolation, however, that the jobs market is now in a better position to absorb job losses caused by company administrations.”
The other concern, he added, was around the skills shortages at employers’ disposal, with “the conundrum of meeting immediate demand with employing the skills needed tomorrow that business will need to balance if economic growth is to continue”.
Ian Burke, director at totaljobs.com, said: “The government must ensure that the recovery benefits all sectors of society – including young people and those looking for work in sectors where wage growth remains low.”
Burke added that the figures, released a day before Scotland decides whether to remain part of the union, may be negatively impacted by the outcome of the referendum.
“Whatever the outcome, tomorrow’s referendum on Scottish independence will have significant consequences for UK employment as a whole and may well disrupt the steady fall in unemployment that we have been seeing for the last year.”
Andrew Hunter, co-founder of Adzuna, which searches websites and collates data, added: “Salaries have been stuck at a standstill for far too long, but there are now some signs that the wage malaise is beginning to lift.
“Advertised salaries grew for the first time since the recession in July, according to the latest Adzuna Jobs Report. Demand for skilled workers, alongside greater profits flowing into the balance sheets of employers, is providing the push needed to lift salaries out of their state of inertia.”
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