Job market optimism as UK employment hits a high

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The number of people unemployed in the UK fell to 1.6m in the quarter to December 2016, according to data from the Office for National Statistics.
 

The ONS data reveals unemployment remained at 4.8%, while the number of people in work rose to a record high of 74.6% over the period.

Lee Biggins, founder and managing director of job board CV-Library, called the figures “positive news”.

“The employment rate is continuing to climb, which is positive news given that the final few months of the year can often see hiring levels stagnate. 

“Our own data for the same period – October to December 2016, inclusive – found that jobs were up by 14.4% when comparing figures with the same period in 2015, while applications also grew by a steady 3.4%. It’s clear that there is a stable labour demand and it’s promising that there is a healthy pipeline of talent available to fill these positions.”

Meanwhile, John Salt, group sales director at job board Totaljobs, said that continuing falling unemployment was further proof of the UK job market’s resilience in the face of change.

“Our most recent Totaljobs Employment Index also testified to the strength of the job market, with applications up 14% over the last three months, November 2016 to January 2017, compared with the three months immediately prior, August to October 2016. Moreover, the number of jobs available are up 10% over the last three months, November 2016 to January 2017, compared with the same period twelve months ago, November 2015 to January 2016.

“Employers can take real confidence from the consistency of employment figures, with month-on-month improvements suggesting exponential growth in the job market. This, despite the continued uncertainty surrounding Brexit negotiations.

“In light of this positivity, we would urge employers to continue to make the hires they feel are needed for their business to grow. There is a real wealth of talent out there and it falls to employers to use it to the fullest.”

Doug Monro, co-founder of job search engine Adzuna, welcomed the figures but warned of “volatile” UK wage growth.

“The employment rate is now at its highest level since records began 46 years ago, meaning you have to go back to the days of T.Rex and Slade topping the charts to remember a time when more people were in work. Big global companies, such as Apple, have thumbed a nose at Brexit uncertainty by saying they are very optimistic about the UK’s future and have reaffirmed their commitment by planning new headquarters in the redeveloped Battersea Power Station development.

“The ONS figures also suggest that average earnings are starting to rise, but our data suggests that it’s not quite time to pop the champagne corks on that front as wage growth has been volatile of late. Indeed our latest jobs report found that salaries in the capital are struggling more than any other region in the country, having decreased 3.9% in the year to December 2016.

“In short, employment prospects are as healthy as ever, but wage expectations may have to be a bit more modest than previously.”  

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