Member Article

Unemployment falls by 50,000

Unemployment has fallen by 50,000 in the three months to August, figures from the Office for National Statistics show.

The number of full-time employed has risen by 88,000 and part-time employment has risen 125,000. Employment was highest in the East of England and the South West, and at its lowest in the North East.

The number of employed is at a record high, although analysts have argued that the high proportion of part-time and temporary workers is masking unemployment.

Tony Dolphin, IPPR Chief Economist, said: “Today’s figures are good news. They show further welcome falls in unemployment, which is good news especially for young people. There has clearly been an Olympic effect. Almost half of the rise in employment across England has been in London and a quarter of new jobs are temporary.

“Employment has been rising for several months as the private sector creates sufficient jobs to off-set cuts in the public sector. Employers deserve credit for giving young people a chance and taking them on. Hopefully they can benefit from these opportunities and stay in work into next year.

“But despite improvements in the overall employment rate, long-term unemployment has risen again and is at a 16 year high. The long-term unemployed should be offered a guaranteed job to make sure they don’t become permanently cut off from the jobs market.”

TUC General Secretary Brendan Barber added: “These may be the best figures for some time, but we still need to do much, much better. There are still hundreds of thousands of young people without work, over a million people working part-time who want full time-jobs and wages are still trailing below inflation.

“That is why we need a future that works, where we invest in good sustainable jobs with prospects and in tackling long-term unemployment and the living standards crisis.”

Neil Carberry, CBI Director for Employment and Skills, said: “Businesses are still creating jobs in a very tough economy, with employment rising by 212,000 in the three months to August. It is particularly encouraging that youth unemployment has started to fall, which suggests that job prospects for young people are picking up.

“But despite the positive news, we still have more than two and a half million people out of work, so today’s data shows that much remains to be done. Progress on unemployment will require sustained economic growth. Addressing issues with access to finance and getting shovels in the ground on key infrastructure projects should be priorities for the Government.

“Effective investment in skills - aligning government spending with what employers need - is also an area where we can make progress, building on the success of the employer ownership pilots run by UKCES. Raising skill levels is an essential part of tackling long-term unemployment.”

Graeme Leach, Chief Economist at the Institute of Directors, said: “The great employment mystery deepens. The headline rate of unemployment, the number of people claiming Job Seeker’s Allowance and those economically inactive have all fallen, and yet an optimistic description of economic growth is that it’s pretty much flat.

“There’s also good news from rising pay, although it’s still not rising fast enough to beat inflation. The recovery is going to be slow and difficult, and will not really take off until the Government adopts a bold plan to make it easier for businesses to take on more staff, makes our tax system internationally competitive and completely overhauls our ageing and insufficient transport, energy and communications infrastructure.”

This was posted in Bdaily's Members' News section by Tom Keighley .