Number of people in work up 167,000, says ONS

Nick Elvin

The number of people in work in the UK has risen by 167,000, according to new Office for National Statistics (ONS) labour market data.

The latest Labour Market Statistics bulletin shows that between April and June 2014, there were 30.6 million people in work – 167,000 more than for January to March, and 820,000 more than a year earlier.

The statistics also show that the number of unemployed people in the country decreased by 132,000 over the previous quarter to 2.08 million, which is 437,000 fewer than a year earlier. The report also reveals that there were 8.86 million economically inactive people (those out of work but not seeking or available to work) aged between 16 and 64 – 15,000 more than the previous quarter but 130,000 fewer than a year earlier.

Meanwhile, pay including bonuses for employees was 0.2% lower than a year earlier, but pay excluding bonuses was 0.6% higher.

Commenting on the statistics, John Cridland, director-general of the CBI, said: “It’s encouraging to see the unemployment rate has fallen to its lowest since 2008 with far more opportunities being created for young people.

“While disappointing this month, we would expect wage growth to pick up over time, but this can only go hand-in-hand with improving productivity.”

Ian Temple, chairman of global recruitment firm Hydrogen, added: “Although unemployment on an annual basis is falling, this is not yet having an impact on wage inflation. Additionally, the introduction of bonus caps is hindering wage growth. Despite an increased availability of jobs, at this point people are placing less emphasis on increased remuneration and more on simply securing a role.”

Permanent and temporary vacancies show increase

While the ONS statistics reveal more people are in work, the latest Recruitment Market Trends Report by Broadbean Technology shows that opportunities for both temporary and permanent work are increasing.

July 2014 saw a rise in permanent and temporary vacancies, on a month-on-month basis, by 4.95% and 11% respectively, while on a year-on-year basis, both permanent and temporary vacancies continued to grow for a 16th consecutive month (17.2% and 22.3% respectively).

In terms of industry sectors, permanent vacancies in Logistics Distribution & Supply Chain showed the greatest increase (34% quarter-on-quarter and 62% year-on-year), followed by Transportation & Rail (33% / 46%). New Media & Internet vacancies fell by 15% (14% year-on-year), while Property & Housing, and Media vacancies also decreased.

Temporary vacancies in Pharmaceuticals increased by 44% (40% year-on-year), and Health and Safety by 43% (116% year-on-year). Graduates & Trainees, Utilities, and Financial Services all experienced decreases.

Overall, there was a 4.5% decrease in job applications per vacancy, while offered salaries saw a 0.39% average decrease on a three-month rolling basis.