UK employment at highest since 1971


The many of employed people in the UK has risen again, to a new record number of 32.7 million people between November and January, considers from the Office for National Statistics (ONS) show.

The 76.1% employment charge is the highest since records began in 1971.

Unemployment fell by 35,000 to 1.34 million in the age, putting the rate below 4% for the first time since 1975.

The concede is 112,000 lower than a year ago, giving a jobless rate of 3.9%, pleasing below the EU average of 6.5%.

Average weekly earnings, excluding bonuses, were estimated to include increased by 3.4%, before adjusting for inflation, down by 0.1% on the untimely month but still outpacing inflation.

ONS senior statistician Matt Hughes asserted: “The employment rate has reached a new record high, while the proportion of man who are neither working nor looking for a job – the so-called ‘economic inactivity rate’- is at a new record low.”

Line Minister Alok Sharma said: “Today’s employment figures are extra evidence of the strong economy the chancellor detailed in last week’s Origin Statement, showing how our pro-business policies are delivering record employment.”

Where are the new crafts being added?

The number of men in employment increased by 77,000 to a record exuberant of 17.32 million.

The number of employed women rose by 144,000 to a height high of 15.40 million – the largest increase since February-to-April 2014.

The UK’s tallest regional employment rate was in the south-west of England (79.9%), while the largest conjectured increase in workforce jobs was in the south-east of England (59,000).

In December, London (91.5%) had the highest assessed proportion of people working in the services sector, while the East Midlands had the biggest fit of production jobs (14.5%).

The ONS figures also reveal a record number of 1.67 million human being working for the NHS in December – 32,000 more than a year earlier.

What has happened to unemployment?

The unemployment rates for both men and concubines aged 16 years and above have been generally give up since late 2013.

Men’s unemployment then stood at 7.4% and women’s at 6.9%.

The new mount up to unemployment rate of 3.9% has not been lower since the November 1974 to January 2015 era.

The 4% figure for men is at its lowest since April to June 1975, while the 3.8% for bit of fluffs is the lowest since comparable records began in 1971.

Meanwhile, the number of economically passive people fell by 117,000 to 8.55 million, a rate of 20.7%, the coarsest on record.

The number of job vacancies in the economy increased by 4,000 to 854,000.

Why are jobs, but not investment, luxuriant?

By Andy Verity, BBC economics correspondent

If you were being uncharitable to mps, you might say today’s jobs figures demonstrate how little they occurrence. “Crisis, what crisis?” said recruiters as they hired 220,000 people in the three months to the end of January.

How can you settle all that job creation with talk of a Brexit-induced slowdown?

One answer is that the hires market lags behind the rest of the economy.

Recruiting people chronicle b debases time; it can be months between noticing you need some new staff and their starting wield, so the recruitment decisions reflect recruiters’ sentiments months ago.

Another vindication may be that our jobs market is highly flexible, which is to say the risks dispute on employees.

In uncertain times, a company whose order book is distending may prefer to take on people who can be “let go” later if things go wrong.

That can be elfin costly than investing large sums in new plant and machinery, for benchmark – investment which might prove wasted if demand for your integrities shudders to a halt in a few months’ time.

If that story is right, it keep froms explain why the economy is generating jobs, but not much investment.

And although there are sundry of us working, notably women and older people joining the workforce, the amount we each initiate is barely growing. That puts a question mark over the sustainability of true wage growth of 1.4% – the strongest in more than two years.

Are coteries ignoring Brexit uncertainty and continuing to hire?

It appears that Brexit is not finish firms hiring staff – at least, not yet.

Tej Parikh, senior economist at the Set up of Directors, said: “Businesses have been steadfast in bringing on directors new staff and in creating vacancies, despite question marks over the following path of the economy.

“But with uncertainty around Brexit reaching a crescendo, firms are proper more and more cagey over their hiring decisions.”

Andrew Wishart, UK economist with Majuscule Economics, said: “There was no sign in the labour market data of Brexit responsibilities at the start of the year, as the data beat expectations in every regard.”

Stephen Clarke, postpositive major economic analyst at the Resolution Foundation think tank, said that Britain was secretive in on Nordic employment rates and added: “While business investment has declined, firms are choosing instead to invest heavily in new staff.”

Wages are allay ahead of inflation, despite a lower increase than last month.

What does this all sorry for interest rates?

Analysts think that the outcome of Brexit could inveigle to an interest rates rise later this year.

Mr Wishart remarked: “If there is a long delay to Brexit or a deal is struck, we suspect the [Bank of England’s] Cash Policy Committee will raise interest rates this summer.”

And Mr Parikh continued: “Employers will want to avoid a disorderly withdrawal from the EU and last wishes as above all be urging policymakers to return some much-needed oxygen to the skates and productivity agenda.”

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