UK unemployment continues to fall with record numbers of women in work
Female employment in the UK has reached its highest level since
records began, as the overall number of unemployed people fell again at
the end of last year.
The employment rate among women hit 67.2%, the highest since 1971, according to official data released on Wednesday which showed women now account for 46% of the UK workforce.
The latest rise was driven by an increase in the number of women working full time, which was up by 122,000, to 8.1 million, over the past three months.
The number with part-time jobs fell, by 28,000, to 5.9 million, while the number of men in both full-time and part-time work rose.
Across the wider UK economy there were 2.3 million people out of work in the three months to December, 125,000 fewer than in the three months to September, although the pace of falling unemployment was slowing, according to the Office for National Statistics (ONS).
However, the latest data showed that the overall unemployment rate increased to 7.2% in the final three months of the year, from 7.1% in the three months to November. But that was lower than the 7.6% rate in the three months to September. Economists described the apparent increase as a statistical quirk relating to the way the ONS measures and compares unemployment.
A breakdown of the figures over previous months suggested there was a rise in the number of people out of work in December, but the ONS stressed that monthly figures were volatile and a three-month average was a more representative indicator.
Nick Palmer, senior labour market statistician at the ONS, explained: "The latest unemployment rate is 7.2%, down 0.4 points on the previous quarter. This is a comparison between the July-September and October-December three-month periods. It is higher than last month's published figure of 7.1% for September-November.
"However, it is not directly comparable with the figure published this month, as the labour force survey is not designed to measure monthly changes. The main conclusion that should be drawn from these latest figures is that the rate at which unemployment has been falling is likely to have slowed down."
The number of people claiming jobless benefits fell by 27,600 between December and January, to 1.22 million. Between January 2013 and January 2014, the number of jobseeker's allowance claimants fell by 327,600, in the largest annual fall in since March 1998.
Wages growth accelerated slightly to 1% between October and December, compared with 0.9% a year earlier, adding to hopes that earnings growth will start to outpace inflation by the end of 2014.
A breakdown of the data showed that workers in the manufacturing sector, and in wholesaling, retailing, hotels and restaurants, have already seen a rise in real wages, with earnings growth above the 1.9% inflation rate in those industries.
Esther McVey, the employment minister, said the figures showed that "the government's long-term plan to build a stronger, more secure economy is helping businesses create jobs and get people into work".
Rachel Reeves, the shadow work and pensions secretary, welcomed the overall fall in unemployment, but highlighted the fact that more than 900,000 young people were still unemployed and more than 250,000 young people had been unemployed for over a year.
She said: "Today's figures also show working people facing a cost-of-living crisis are over £1,600 a year worse off since David Cameron became prime minister."
The Work Foundation said the broad trend of falling unemployment was welcome, but there were groups at the margins who were still suffering. Charles Levy, senior economist at the thinktank, highlighted a rise in unemployment among 16 and 17-year-olds, and other more worrying trends.
"Underemployment remains a problem, with 1.4 million individuals working part-time.
"The jump in self-employment is also of concern since self-employment is dominated by low-wage work. If our recovery is to be sustained, the attention must now shift on to supporting those on the edge of our labour market."
The slight increase in the jobless rate took even more pressure off Bank of England policymakers to consider an interest rate rise this year after a fall in the annual rate of inflation to 1.9% in December, from 2% in November.
Minutes of the February meeting of the Bank of England's monetary policy committee (MPC), published on Wednesday, showed all nine members voting in favour of keeping interest rates on hold.
Despite the sharper than expected fall in the jobless total in previous months, the MPC said borrowing costs could be kept on hold because inflation was low, the public expected the cost of living to be kept under control, and any threat from the housing market could be dealt with by the Bank's financial policy committee.
"With unemployment remaining above the 7% threshold, the MPC's policy guidance therefore remained in place and no member thought it appropriate to tighten, or to loosen, the stance of monetary policy at this juncture," the minutes say.
anand maurya
pgdm-1sem
The employment rate among women hit 67.2%, the highest since 1971, according to official data released on Wednesday which showed women now account for 46% of the UK workforce.
The latest rise was driven by an increase in the number of women working full time, which was up by 122,000, to 8.1 million, over the past three months.
The number with part-time jobs fell, by 28,000, to 5.9 million, while the number of men in both full-time and part-time work rose.
Across the wider UK economy there were 2.3 million people out of work in the three months to December, 125,000 fewer than in the three months to September, although the pace of falling unemployment was slowing, according to the Office for National Statistics (ONS).
However, the latest data showed that the overall unemployment rate increased to 7.2% in the final three months of the year, from 7.1% in the three months to November. But that was lower than the 7.6% rate in the three months to September. Economists described the apparent increase as a statistical quirk relating to the way the ONS measures and compares unemployment.
A breakdown of the figures over previous months suggested there was a rise in the number of people out of work in December, but the ONS stressed that monthly figures were volatile and a three-month average was a more representative indicator.
Nick Palmer, senior labour market statistician at the ONS, explained: "The latest unemployment rate is 7.2%, down 0.4 points on the previous quarter. This is a comparison between the July-September and October-December three-month periods. It is higher than last month's published figure of 7.1% for September-November.
"However, it is not directly comparable with the figure published this month, as the labour force survey is not designed to measure monthly changes. The main conclusion that should be drawn from these latest figures is that the rate at which unemployment has been falling is likely to have slowed down."
The number of people claiming jobless benefits fell by 27,600 between December and January, to 1.22 million. Between January 2013 and January 2014, the number of jobseeker's allowance claimants fell by 327,600, in the largest annual fall in since March 1998.
Wages growth accelerated slightly to 1% between October and December, compared with 0.9% a year earlier, adding to hopes that earnings growth will start to outpace inflation by the end of 2014.
A breakdown of the data showed that workers in the manufacturing sector, and in wholesaling, retailing, hotels and restaurants, have already seen a rise in real wages, with earnings growth above the 1.9% inflation rate in those industries.
Esther McVey, the employment minister, said the figures showed that "the government's long-term plan to build a stronger, more secure economy is helping businesses create jobs and get people into work".
Rachel Reeves, the shadow work and pensions secretary, welcomed the overall fall in unemployment, but highlighted the fact that more than 900,000 young people were still unemployed and more than 250,000 young people had been unemployed for over a year.
She said: "Today's figures also show working people facing a cost-of-living crisis are over £1,600 a year worse off since David Cameron became prime minister."
The Work Foundation said the broad trend of falling unemployment was welcome, but there were groups at the margins who were still suffering. Charles Levy, senior economist at the thinktank, highlighted a rise in unemployment among 16 and 17-year-olds, and other more worrying trends.
"Underemployment remains a problem, with 1.4 million individuals working part-time.
"The jump in self-employment is also of concern since self-employment is dominated by low-wage work. If our recovery is to be sustained, the attention must now shift on to supporting those on the edge of our labour market."
The slight increase in the jobless rate took even more pressure off Bank of England policymakers to consider an interest rate rise this year after a fall in the annual rate of inflation to 1.9% in December, from 2% in November.
Minutes of the February meeting of the Bank of England's monetary policy committee (MPC), published on Wednesday, showed all nine members voting in favour of keeping interest rates on hold.
Despite the sharper than expected fall in the jobless total in previous months, the MPC said borrowing costs could be kept on hold because inflation was low, the public expected the cost of living to be kept under control, and any threat from the housing market could be dealt with by the Bank's financial policy committee.
"With unemployment remaining above the 7% threshold, the MPC's policy guidance therefore remained in place and no member thought it appropriate to tighten, or to loosen, the stance of monetary policy at this juncture," the minutes say.
anand maurya
pgdm-1sem
No comments:
Post a Comment