Wednesday, 18 March 2015

UK labour market update - March 2015


A brief analysis of the ONS Labour Market Statistics published on 18 March


Unemployment

ILO unemployment:                                          1,856,000
Claimant Count:                                                816,800


Underemployment

Temporary workers wanting permanent work:     573,000
Part-time workers wanting full-time work:           1,322,000
Economically inactive, wants a job:                     2,247,000


Vacancies:                                                       723,000


Ratios

Unemployed : vacancies                                    2.6:1
Underemployed/unemployed :  vacancies            8.3:1                  


Commentary

Unemployment has fallen in the last year, but there is still considerable underemployment, with many people looking for additional work.

While the headline figure of 2.6 people unemployed for every vacancy is low; the number of people actually wanting work is over 8 for every vacancy.

There are also signs that the unalloyed job growth of recent quarters is slowing with unemployment rising in the East of England and Scotland in the last quarter. In South East England unemployment was unchanged from three months ago.

UK unemployment is at 5.7%, far lower than the EU average, but still higher than other major economies like Germany (4.7%) and the US (5.5%).

Public sector employment is at its lowest level since records began in 1999 at only 5.37 million (representing 17.4% of the workforce). Public sector pay is only rising by 0.7% a year; whereas private sector pay is rising at 2.0% (2.1% including bonuses).
 
 
 

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