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More mixed news on the jobs front

16 June 2010

There was more mixed news on employment from the ONS June release.

The broader ILO measure of unemployment grew again by 23,000 in the three months to April, to reach 2.47 million This was balanced by some good news, as the numbers claiming Jobseekers Allowance again declined, by 30,900, to reach 1.48 million in May.

The employment rate fell slightly to reach 72.1 per cent over the quarter, while total employment grew marginally, by 5,000. This overall figure however masks the loss of 56,000 full-time jobs, offset by a growth of 61,000 part-time workers. The number of workers who are working part-time because they couldn’t find full-time employment is 1.08 million, the highest since comparable records began in 1992.

The number of vacancies for the three months to May grew very slightly, up by 7,000, while private sector employment grew by 12,000 in the three months to March.

Nigel Meager, Director of the Institute for Employment Studies, commented on the latest figures:

‘It needs to be stressed that the UK labour market has remained more resilient in the current downturn than in the last two recessions. Employment has not fallen by nearly as much as might be expected from the fall in GDP. The latest figures, however, suggest that the early stages of recovery are finely balanced. They show some moderate improvement in private sector employment in the three months to March, and the number of vacancies also rose slightly in the three months to May. However unemployment continues to grow, by 23,000 in the last quarter, and there are more than five jobseekers for every vacancy. With the upturn in the private sector still fragile, and substantial job cuts imminent in the public sector, which will have knock-on effects across the economy, it is difficult to escape the conclusion that unemployment could continue to grow during the rest of 2010 and beyond.

‘The figures also show that there remain serious concerns about long-term unemployment; long-term unemployment has risen again, and stands at over three-quarters of a million. Continued action to support this group back into work is crucial in mitigating the longer-term impacts of the economic downturn.’

Further information

Nigel Meager is a labour economist by training, and a well-established international expert on labour market and employment policy issues. Director of the Institute since 2004, he has a long and varied research track record covering the functioning of national, regional and local labour markets, unemployment, skill shortages, labour market flexibility, changing patterns of work and equal opportunity policies and practices.

For further information or comment, contact Nigel Meager or call +44(0)1273 763 445, or the IES press office, or call 01273 763414.