Unemployment Falls

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UK unemployment falls by 115,000 to 1.96 million

UK unemployment fell by 115,000 between July & September to 1.96 million, according to the Office for National Statistics (ONS).

Commenting n todays labour market statistics, Geraint Johnes, director at Lancaster Universities Work Foundation said:  

“The labour market statistics released today indicate continued strengthening of the economy. Employment has increased by 112,000 over the quarter, while unemployment has fallen by 115,000. This keeps unemployment at the 6.0% rate reported last month.

“Numbers of self-employed have fallen over the quarter by some 87,000, with 78% of these having been part-time. Meanwhile the number of employees has increased by 196,000, and 72% of this growth is in full-time employment. All these trends suggest that the labour market is gradually returning to normal, with fewer people in relatively insecure posts.

 “Total pay including bonuses continues to rise only slowly, however, and are indeed still falling in real terms. Wage growth amounted to just 1% over the last year, well below the rate of price inflation. There are some signs of faster wage growth - again in manufacturing and construction - but nominal wages are falling in the distribution sector. Increased business investment should see productivity rise over the next few months, and real wage increases can be expected to follow that. But overall the picture remains one in which there is labour market slack, and we cannot on the back of that expect any tightening of monetary policies in the immediate future.”

Around 14.7% of workers, or 4.5 million are self-employed, down 88,000 on the quarter but part-time workers wanting full-time work remains at around 1.3 million. The real value of take-home pay is 13% below pre-recession levels says Paul Kenny, general secretary of the GMB union.

So some modest good news, bringing a little good cheer.