UK employment falls as pace of real terms pay rises

-

Unemployment in the UK has risen for the first time in two years, according to the latest figures from the Office for National Statistics (ONS).

The labour market data for the three months to May 2015 showed that unemployment rose by 15,000 to 1.85 million, while the pace of pay rises also increased.

Neil Carberry, CBI Director for Employment and Skills, said:

“While it is disappointing to see that employment has fallen, this is largely due to reductions among those self-employed.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

“This fall must be seen against the backdrop of strong employment growth since the end of 2013, so it is far too early to draw conclusions. Nevertheless, it offers a timely reminder of the importance of Government treading carefully in the labour market and protecting the flexibility that gives Britain a great record on jobs.”

Between March and May 2015, the number of people in work in the UK fell by 67,000 down to 30.98 million. The fall was the first since April 2013.

In this period the rate of real terms pay in the UK continued to grow, with average weekly earnings rising by 2.8 percent. The increase is at the highest rate since 2009.

Mark Beatson, CIPD Chief Economist, said:

“The new figures suggest that the recent increases in employment may be starting to level off, which appears to be hitting the short-term unemployed and young people in particular.

The government needs to ensure that it maintains an adequate level of support for people becoming unemployed alongside its quite justified focus on support for the long-term unemployed and other disadvantaged groups in the labour market.

The target to increase the number of apprenticeships is welcome, but they are only part of the solution because apprenticeships aren’t suitable for all employers. To combat this, we need to see national programmes complemented by more local initiatives that can meet the needs of local employers and get more young people into work.”

Steff joined the HRreview editorial team in November 2014. A former event coordinator and manager, Steff has spent several years working in online journalism. She is a graduate of Middlessex University with a BA in Television Production and will complete a Master's degree in Journalism from the University of Westminster in the summer of 2015.

Latest news

Workplace belonging ‘rises to highest level in a decade’, but many workers still feel excluded

Most UK employees now feel a sense of belonging at work, but many still do not feel consistently valued or included.

Workers turning down jobs over company reputation as Gen Z demands values match

Younger workers are increasingly rejecting employers over company culture, leadership behaviour and reputation before interviews even begin.

Bill Winters on ‘lower-value human capital’

“It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.”

Half of UK workers say their jobs are damaging their health

Rising levels of stress, fatigue and inactivity are affecting workers across the UK, with growing concern over long-term health and job performance.
- Advertisement -

Transgender staff excluded from single-sex toilets under new equality guidance

Transgender people must be excluded from single-sex toilets and changing rooms that correspond with their lived gender under updated...

Simon Coker: Closing the emotional gap – why AI in the workplace is as much a human challenge as a technological one

AI adoption is transforming how work gets done across every sector. But its deeper impact is less visible: it is reshaping how people feel about their work.

Must read

Jane Sunley: Internal communications and employee engagement (‘the big E’)

There are some fundamental building blocks that form the glue to stick together everything that’s good about your organisation. These include culture and values. This blog looks at two more – internal communications and employee engagement. Without these in place and working well it’s likely that your diligent and strenuous efforts in other key areas (learning and development, for example) might not yield the returns you’d expect.

Emily Mikailli: Women’s careers have moved on — the career ladder hasn’t

There is still a belief that careers should follow a familiar upward path, but it was never built around the realities of modern women.
- Advertisement -

You might also likeRELATED
Recommended to you