Human Resource Management

HRM Guide Updates

UK Unemployment

Labour Market Statistics

October 15 2014 - The unemployment rate stands at 6.0% - down 0.5% on the quarter and 1.7% down over the year. 30.76 million people were in work in June to August 2014 according to the labour force survey (LFS). The number of people employed was 46,000 higher this quarter and 736,000 higher than last year.

The working age employment rate is 73.0% - up 0.1% on the last quarter and up 1.5% over the year.

ILO-defined unemployment in June to August 2014 was 1.7 million (6.0%) - down by 154,000 on the previous quarter and down 538,000 on the same quarter last year.

The claimant count for key out-of-work benefits was 951,000 in September - down by 18,600 on the previous month and down 394,5600 on the year.

Average wages, including bonuses, rose by 0.7% over the year.

Employment Minister Esther McVey said:

"All of our reforms are focussed on helping people into work and today's record figures show that the government's long-term economic plan to help businesses create jobs and get people working again is proving successful.

"Behind the record figures there are countless individual stories of people turning their lives around, of families who are now feeling more secure with a regular wage, and of young people escaping unemployment and building a career.

"We know there is always more to do, which is why it is vital to stick to delivering a plan for full employment that's creating growth and jobs."

CIPD Chief Economist Mark Beaston said:

"Another huge fall in unemployment means that unemployment has fallen below 2 million a month earlier than many expected, and this is the first time it has been below 2 million since September-November 2008, the time of Lehman Brothers' collapse and a descending sense of gloom, if not panic, about the economy. The recovery took longer than expected but the strength of employment throughout that period has continued to surprise. Even twelve months ago, unemployment was still at 7.7%.

"We have also seen some more very good news on youth unemployment, which has fallen by just over a quarter of a million in the past year, with most of the fall (207,000) among young people not in full-time education. Although the population of young people is falling slightly and a few more of them are in full-time education, most of this improvement appears to be due to 18-24 year olds taking advantage of the expanding labour market to find employment. Research shows that most employers are impressed with the young people they take on - and we are delighted to see more people being given the chance.

"Jobs growth remains very strong, with the number in employment increasing by 736,000 over the last twelve months and, although self-employment has been increasing, the majority of this employment growth has been in full-time employment.

"Pay growth, though, remains very subdued, indeed it is barely moving. In August, total weekly earnings were only £1 a week higher than in December last year. Our labour market has been enormously successful at getting people into work - the next challenge is to enable people once they are in work to develop their skills and productivity so they have meaningful opportunities to progress and earn more."

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