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- Nick Elvin
The unemployment rate has fallen below 6% for the first time in six years, new labour market figures show.
According to Office for National Statistics data for the three months to November, the rate of 5.8% is the lowest since the period June to August 2008, with unemployment falling by 58,000 to 1.91 million, while during the past year there has been a fall of 418,000. A total of 30.8 million people are now in work.
The figures also show that UK job vacancies have risen by 127,000 over the last 12 months to a 14-year high of about 700,000. Wages have also risen above inflation, up 1.8% (up 2.2% across the private sector).
Commenting on the statistics, Katja Hall, CBI deputy director-general said: “It’s good to see that employment has risen again, albeit at a slower rate than over the last few quarters.
“Pay edged up faster than inflation, but overall pay growth remains low. Productivity will need to improve significantly before pay can rise faster.
“There’s also more to do for young people – while unemployment fell overall, the number of 16-24 year-olds out of work and not in education has increased substantially this quarter.”
‘Confidence returning’
David Morel, managing director of London-based Tiger Recruitment said the jobs market has undergone a transformation over the past 12 to 18 months.
“Employers really have to compete for the best candidates across all sectors and benefits packages are proving especially important,” he said. “If the package you are offering isn’t good, you will find yourself on the back foot when it comes to hiring the best candidates.
“Minimum salary levels have also increased. People are now valuing themselves far more than they were two years ago. Again, this is a sign of rising confidence. In 2015, we expect the market to continue to favour the candidate and for average salaries to increase further.”
Self-employment ‘here to stay’
The statistics also reveal that between September to November 2013 and September to November 2014, the number of self-employed people working full-time increased by 54,000 and the number in part-time self-employment increased by 68,000.
Chris Bryce, chief executive of the Association of Independent Professionals and the Self Employed (IPSE), said: “Self-employment is no longer just for the few, it’s for the many and it’s particularly welcoming that the number of women choosing to go solo continues to increase and has reached a whopping 1,450,000.
“Ahead of the general election in May, the UK’s smallest businesses should be at the top of the political agenda and we hope all of the major parties will commit to giving them the support they need. Not only will this help independent professionals up and down the country, the UK’s economy will reap the rewards.”
‘Worrying trends remain’
Ian Burke, director of totaljobs.com, gave a cautious welcome to the figures, saying there are underlying issues to address in the job market.
“Worrying employment trends still remain – notably the number of people still on zero-hours contracts – a theme at the top of the political agenda in the run up to May’s general election,” he said.
“Workers in the UK are now starting to feel the benefits of real wage growth and as the country moves closer towards ‘full employment’, businesses must ensure that our continued economic recovery is built on secure and well-paid employment.”
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