Flat labour market figures signal tougher times ahead for jobseekers

Figures released earlier today by the Office for National Statistics showing a rise in headline employment in the three months to July mask further signs that the UK labour market is continuing to cool. This signals a tougher period ahead for people seeking work according to the Chartered Institute of Personnel and Development.

CIPD Chief Economist John Philpott comments, ìThe labour market is now clearly off the boil. Despite a rise in the total number of people in employment ñ which might reflect employersí greater use of migrant workers ñ the number of jobs is now falling in construction and consumer oriented services sectors as well as in manufacturing. And while redundancies are up slightly, most of the slowdown is being felt in recruitment where there are fewer job vacancies and slower underlying earnings growth as competition for staff eases. As a result, there are more unemployed jobseekers and more economically inactive people who say they want to work.

Although any rise in unemployment is likely to be modest, most independent market surveys are now starting to detect the drop in employersí recruitment intentions first picked up by the CIPD earlier this year. The task of finding a job will be that much harder in the coming months, which means tougher times ahead for jobseekers and a more difficult backdrop to welfare to work policy.î