Human Resource Management

HRM Guide Updates

UK Unemployment

Labour Market Statistics

November 11 2015 - The unemployment rate stands at 5.3% - down 0.3% on the quarter and 0.7% down over the year. 31.21 million people were in work in July to September 2015 according to the labour force survey (LFS). The number of people employed was 177,000 higher this quarter and 419,000 higher than last year.

The working age employment rate is 73.7% - 0.3% up on the last quarter and up 0.7% over the year.

ILO-defined unemployment in July to September 2015 was 1.75 million (5.3%) - down by 103,000 on the previous quarter and down 210,000 on the same quarter last year.

The claimant count for key out-of-work benefits was 795,500 in October 2015 - up by 3,300 on the previous month and down 139,100 on the year.

Average wages, including bonuses, rose by 3.0% over the year.

Gerwyn Davies, Labour Market Analyst, CIPD commented:

"Today's jobs figures, showing further increases in the number of people in work and equally sharp falls in the claimant count, will cheer the Chancellor of the Exchequer ahead of his Autumn Statement later this month. In addition, signs that wage pressure is moderating against the backdrop of historically low levels of inflation strengthens the Bank of England case for not hiking in interest rates in the next few months, despite unemployment falling to a seven-year low.

"Harsh critics might point out that a relatively large proportion of the jobs are part-time. However this follows a period of strong growth in full-time employment. Against the backdrop of its net migration target and the EU debate, the only potential worry for the government perversely is the sharp increase in the number of non-UK nationals in employment. The increase is driven by non-UK nationals from the EU that now make up two million of the UK workforce for the first time.

"However, this development should also be celebrated. CIPD research shows that employers have headed off the threat from skills shortages by hiring more young people, upskilling the existing workforce and turning to migrant workers. This may explain why pay pressures have not increased, which has supported stronger employment growth and eased any pressure on the Bank of England to raise interest rates at a time when the global economy is showing signs of cooling down. Even though pay pressures have eased, the rate of earnings growth comfortably exceeds price inflation, although there is still plenty of ground to be made up after several years of earnings going up by less than prices."

David Lahey, VP International at Jobvite said:

"Although employment has risen, there is still much to do in the UK labour market. Worldwide, there is uncertainty over the labour market and the UK is not exempt from this.

"With Bank of England's Deputy Governor Minouche Shafik recently claiming that "the labour market will start to tighten over the coming months," it is absolutely vital companies begin overhauling their recruitment strategies. The cornerstone of any strong business is people, and with the skills shortage sitting alongside the job market squeeze, the best candidates are going to be even harder to hire and retain. This is especially true when you consider that Jobvite's 2015 UK Social Recruitment Study revealed that 58% of recruiters say that the biggest challenge their company faces in hiring quality talent is down to the lack of skilled or qualified workers.

"The key to safeguarding your business against a talent shortfall, lies in understanding the current state of recruitment. Today, recruitment like marketing is a constant activity. If you want to hire people that will be productive, you must be able to attract candidates that believe in the values of your company and want to be a part of it. You can only do this if you have a strong employer brand. If all recruiters focused on building strong and genuine employer brands, it would lead to a more productive and improved UK labour force. Doing this requires a focused and modern approach to recruitment that makes the most of today's technology.

HRM Guide makes minimal use of cookies, including some placed to facilitate features such as Google Search. By continuing to use the site you are agreeing to the use of cookies. Learn more here

HRM Guide Updates
Custom Search

  Contact  HRM Guide Privacy Policy
Copyright © 1997-2015 Alan Price and HRM Guide Network contributors. All rights reserved.