“On the surface the ONS labour market statistics paint the jobs market in a positive light, as the number of people in work increases and the number of unemployed fell. Looking at the wider context of the labour market, temporary inflation rises are continuing to place further strain on household disposable incomes as jobseekers and employees prepare to feel the pinch over the coming months. However, the labour market is sitting tight in the eye of an economic and political storm and it is no secret that as prices continue and wages flatline, cash flow could be an issue for many.
“With the General Election around the corner, the successful party has a tough job ahead to contain the underlying pressures that are contracting wage growth as consumers may eventually begin to see a fall in living standards. From an employer’s perspective, this may affect employee morale as the stress and strain of stagnating advertised salaries starts to creep in.”
ONS Labour Market Stats- May 2017
- Estimates from the Labour Force Survey show that, between October to December 2016 and January to March 2017, the number of people in work increased, the number of unemployed people fell, and the number of people aged from 16 to 64not working and not seeking or available to work (economically inactive) also fell.
- There were 31.95 million people in work, 122,000 more than for October to December 2016 and 381,000 more than for a year earlier.
- The employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.8%, the highest since comparable records began in 1971.
- There were 1.54 million unemployed people (people not in work but seeking and available to work), 53,000 fewer than for October to December 2016 and 152,000 fewer than for a year earlier.
- The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.6%, down from 5.1% for a year earlier and the lowest since 1975.
- There were 8.83 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 40,000 fewer than for October to December 2016 and 82,000 fewer than for a year earlier.
