Latest ONS figures reveal 31.8m are in work

Some 31.8m people are in work while the unemployment rate has dropped to an 11-year low of just 4.8% – down by more than 900,000 since 2010 – according to the latest ONS figures.

The Office for National Statistics has confirmed that employment continues to run at a record high rate of 74.5%, with 31.8 million people in work – an increase of almost 2.8 million since 2010. There are 461,000 more people in work compared to this time last year, and 49,000 more compared to the previous quarter’s figures. In addition, long-term unemployment is the lowest it has been since 2008. Average wages including bonuses grew by 2.3% over the last year, as the claimant count remained at 2.3%, close to its lowest rate since 1975.

The figures also show the number of self-employed individuals in the UK increased 213,000 to 4.79 million in the three months to October 2016.

IPSE, the Association of Independent Professionals and the Self Employed, responded to the findings. Lorence Nye, IPSE Economic Adviser: “As more and more people recognise the benefits of becoming your own boss, self-employment is becoming a key driver in the UK economy. Research has consistently shown the majority of the self-employed work this way out of choice, not necessity.

“We have seen a fundamental change in the structure of the labour market over the past few years. The self-employed now make up more than 15% of all people in work. Now is the time for Government to address this change. These 4.79 million individuals will be looking to the Autumn Statement for new policies that help them run their businesses and prepare for the future.”

The figures also show youth unemployment is down by almost 350,000 since 2010; the number of disabled people in work has increased by 590,000 in the past three years; and women in work is at a record high of 69.8%.

Meanwhile, others urged caution, explaining that the figures cannot reveal detail for specific sectors. Clare McNeil, IPPR Associate Director for work and families, commented: “While we should welcome these latest jobs figures, we should keep a close eye on how particular industries and occupations are faring as we negotiate the uncertain period ahead for the economy. In headline terms, the latest employment figures look encouraging with increases in employment and fewer people unemployed.

“While the overall picture in terms of vacancies still looks strong, officials statistics cannot tell us what is happening in specific industries or occupations. Caution is needed as data from IPPR and Burning Glass shows that there was a significant slump in vacancies in the finance sector between May/June to July/August, with a 13.6% drop in vacancies in the finance sector in London, and a 10% drop in England as a whole.”