Latest ONS figures show unemployment at 11-year low

The latest ONS figures reveal that the unemployment rate has remained at an 11-year low of just 4.8% – down by more than 900,000 since 2010.

The Office for National Statistics has confirmed that employment continues to run at a near-record high rate of 74.5%, with 31.8 million people in work – an increase of over 2.7 million since 2010.

There are 294,000 more people in work compared to this time last year.

The rise in employment continues to be driven by full-time work, which is up by 2 million since 2010. And long-term unemployment is the lowest it has been since 2008.

Average wages excluding bonuses grew by 2.7% over the last year, as the claimant count remained at 2.3%, close to its lowest rate since 1975.

Meanwhile, self-employment fell by 17,000 in the last quarter and temporary employment fell by 35,000, while permanent employment increased by 37,000. However, year-on-year, the 294,000 increase in the UK workforce came courtesy of 209,000 (71%) workers in full-time employment and 86,000 more part-time workers.

The REC’s Chief Executive, Kevin Green, commented on the figures: “The UK is close to full employment with a rate of 74.5%, but the trend of slowing employment growth is concerning. Our data shows that candidate ability has significantly worsened, which goes some way to explain why employers are finding it more difficult to fill vacancies.

“The immediate question is how do employers find the people to fill the jobs they have available? Especially in sectors such as healthcare, hospitality and construction, which rely heavily on workers from the EU, there are real fears about the impact of reduced immigration.

“It’s encouraging to see that pay growth has increased by 2.8% in the last twelve months. However, with inflation rising we could see a squeeze on real wages in the months ahead. Consumer spending could be affected, which would create further challenges for businesses. Confirmation from the Prime Minister that the UK will leave the single market will only add to anxiety about the future health of the jobs market.”

Julia Kermode, CEO of the FCSA, said: “The year-on-year figures show that the number of temporary employees has decreased by 22k and that 71% of new employees are working full-time rather than part-time. Both of these factors contradict recent media rhetoric, which suggests that the UK’s employment figures are driven by increasing number of people in non-permanent, part-time ‘precarious’ roles. Furthermore, there was an increase of 29k people choosing temporary employment because they do not want a permanent role, which contradicts media perceptions that temporary workers do not have any choice over their status.

“Despite the downturn in temporary employment we are seeing an increase of +133k year-on-year in self-employment, which confirms that the dynamics of work are clearly changing. Self-employed workers are key pillars of the UK economy and recent experience has shown their critical role in economic recovery so Government must ensure that they are nurtured for the ongoing stability of the workforce.”