Employment at highest rate since records began

This week’s publication of labour market statistics by the Office for National Statistics (ONS) has revealed the employment rate is at a record 74.6% – the highest employment rate since records began in 1971.

Official figures released this week by the ONS for the period October – December 2016 show that there are over 300,000 more people in work compared to the same time last year. Meanwhile, the number of women in work has risen to a record rate of 70.0%, and youth unemployment is at 12.6% – the lowest level since 2005.

The Recruitment & Employment Confederation (REC) Chief Executive, Kevin Green, said:

“The employment rate is the highest since records began with 300,000 more people in jobs in the last year. However, employers are struggling to find and retain the people they need to do the jobs available, particularly in sectors like food manufacturing, hospitality and healthcare, which are heavily reliant on EU workers. The latest data shows a small fall in the number of EU nationals working in the UK – if this becomes a trend over the coming months, these businesses will feel even more pressure.

“The falling economic inactivity rate could be a sign that older workers, particularly older women, are returning to the workforce. But there’s only so far this can go to help alleviate the skills shortage. The government needs to develop a long term approach to the UK labour market, which includes encouraging greater participation and increasing skills but also a balanced approach to immigration.”

John Salt, Group Sales Director, Totaljobs, also commented: “The fact that unemployment has fallen yet again is further proof of the 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 – January 2017) compared to the three months immediately prior (August – October 2016). Moreover, the number of jobs available is up 10% over the last three months (November 2016 – January 2017) compared to the same period twelve months ago (November 2015 – 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 is 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.”