Labour market on the up at the end of the year

RA Now

The jobs market is strengthening as we go into 2014 with a quarter of a million more people in jobs in the three months to October than in the previous quarter, figures have revealed.

The majority of the jobs growth is in full-time, permanent roles in the private sector. In addition, employment increased in Scotland and Wales and in every region in England, according to the latest Labour Force Survey from the Office for National Statistics.

Just over 30 million people were in work in August to October 2013, making the employment rate 72%, an increase of 0.4 percentage points.

There were 120,000 redundancies in August to October 2013, down 1,000 on the previous quarter and 27,000 on the year. Total weekly pay in October 2013 was up by 0.9% over the year

Employment minister Esther McVey said the statistics showed the government’s long-term economic plan is working.  “It’s also thanks to British businesses up and down the country who are feeling increasingly confident about taking on workers,” she added.

David Kern, chief economist at the British Chambers of Commerce (BCC), agreed that the labour market figures are “very strong”.

“Employment is up, unemployment is down, inactivity is down, and while youth and long-term unemployment remain high, there has been an improvement in these areas,” he added.

“The strong growth in private sector employment at a time when public sector jobs are stagnating proves that businesses are up for the challenge, and are doing all they can to drive the recovery.”

However he pointed to earnings growth being below 1%, saying that the Bank of England’s Monetary Policy Committee should continue to ignore calls from the markets to raise interest rates prematurely.

“The MPC is now in a position where it can deliver a virtuous combination of low inflation and low interest rates, which is what will help businesses continue to grow, expand, and create jobs.” 

The Trades Union Congress said that while the figures are “undoubtedly positive”, the real test for the government is whether everyone will share in the recovery.

“As more people find work, nearly 400,000 people across Britain are set to spend their second successive Christmas on the dole and desperate for work,” said general secretary Frances O’Grady.

“There are still hundreds of employment blackspots across Britain, with more than 15,000 long-term dole claimants in Birmingham alone. Ministers cannot ignore these areas just because the picture in other parts of the country is looking rosier.”