Q1 2016: Employment rate hits record 74.2%

The employment rate in the UK has hit a record high of 74.2%, and there are more people in work than ever before.

This is according to the latest official figures for the first quarter of 2016 from the Office of National Statistics (ONS), which depict the employment rate as being at its highest since records began in 1971. The official statistics released last week by the ONS state that there are now 31.58 million people in work while the unemployment rate remains at 5.1%.

The employment rate for women is measured to be the highest since 1971 at 69.2%, while average wages (before bonuses) grew 2.1% over the last year with around 745,000 vacancies available in the jobs market.

In the wake of the figures’ release, the Freelancer and Contractor Services Association (FCSA) outlined the importance of contingent workers, as 20,000 more people are choosing to work self-employed, plus 28,000 more working on a temporary basis. The figures are based on a comparison between Q4 2015 and Q1 2016.

Commenting on the news, Julia Kermode, CEO of the FCSA said: “Today’s figures clearly demonstrate just how important the flexible workforce is to UK plc. With the uncertainty around the EU referendum companies seem to be turning to temporary workers for help and true to form, the flexible workforce is keeping the economy running.

“The dynamics of work are clearly changing so it is more important than ever that the Government acknowledges these trends and works harder at supporting this flexible contingent group of workers rather than penalising them with unhelpful and prohibitive legislation. This sizeable and strategically important group of workers contribute hugely to the UK economy and should be recognised and valued.”

The Confederation of British Industry (CBI) also responded to the latest ONS labour market statistics, which detail a 44,000 rise in employment in the first quarter of 2016. Josh Hardie, the CBI’s Deputy Director-General, said: “While it’s encouraging that employment has risen there are some signs of a softening in the labour market, particularly with job vacancies falling back. However, continued uncertainty could be weighing on hiring intentions. In addition we are seeing evidence that employers are considering the impact of the National Living Wage, introduced last month.”

Lee Biggins, Founder and Managing Director of CV-Library, gave his verdict on the figures: “The recruitment industry is often the first to feel the effects of economic fallout, so it’s reassuring to see the labour market remain strong during a shaky economic climate.

“Employers are left with many unanswered questions about how a Brexit would impact the labour market, and what the Government will do to support struggling sectors; yet job growth is steady, suggesting that UK businesses are in a strong position and continue to create jobs for the UK economy.”