Government must focus on job creation as unemployment rises
The government must remain focused on job creation in a “choppy” recovery, according to employment minister Chris Grayling.
The government must remain focused on job creation in a “choppy” recovery, according to employment minister Chris Grayling.
Figures from Office for National Statistics show unemployment rose to 2.49m, while the number of people claiming Jobseeker’s Allowance has also increased by 37,000 to 1.56m. The number of people in employment has increased by 25,000 to 29.27m.
Grayling said: “These are disappointing figures but we always said that the road to recovery would be choppy. Clearly this has been a difficult few months with a range of one-off factors and a slowdown in the world economy having an impact on the UK. This is why is we are focused on taking steps to increase growth, support the economy and encourage businesses to invest and create jobs.
“For people who lose their jobs, our new Work Programme is now up and running and will offer jobseekers flexible support tailored to their needs to help them into employment.”
Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), adds: “Today’s jobs figures are very disappointing but not unexpected. After a few surprisingly upbeat quarters the UK jobs market has finally caught up with the reality of weaker demand in the private sector and the impact of mounting public sector job cuts.
“As for the detail the figures are a mix of ups and downs – unfortunately most of them bad news. Jobs up for men (49,000) but down (24,000) for women, a clear signal of the impact of public sector jobs cuts. Youth unemployment is up (15,000). Redundancies are up (32,000) but vacancies are down (22,000).
“All that remains to be seen is how bad things get but given everything else we know about the economic outlook for the UK economy this year and next it looks like the only way is up for unemployment.”
However, Neil Owen, director of the London operations of Robert Half UK, is more positive: “Despite poor UK employment data released this morning and recent announcements within certain areas of the financial services market, we are seeing strong demand from companies in a number of sectors and regions who are still hiring. Employed professionals continue to look for new opportunities, indicating confidence among both hiring managers and job hunters within the market.
“While those unemployed for up to six months has also risen this quarter, we are hearing from some companies that they lack the talent they need to address emerging business opportunities and that managing growth and rising workloads are the two key reasons for adding permanent staff. Financial and business services as well as the natural resources sector are areas where demand outweighs supply for top talent.”
Charles Logan, director at Hays, adds: “The UK economy continues to be faced with challenging times and it is the situation for young people that is particularly worrying. Young people need to be looking at where the opportunities will lie in the future and equipping themselves with the right skills. For example, we are seeing skill shortages in a number of areas, such as IT, oil and gas and engineering, and it is important that solutions are in place so these gaps don’t become a hindrance to growth. Anything that the government can do to give employers the confidence to recruit again, such as supporting for flexible working practices, should be welcomed.”
