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

Personalising the Benefits Experience: Why Employees Need More Than Just Information

This article explores how organisations can move beyond passive, one-size-fits-all communication to deliver relevant, timely, and simplified benefits experiences that reflect employee needs and life stages.

Grant Wyatt: When the love dies – when staying is riskier than quitting

When people fall out of love with their employer, or feel their employer has fallen out of love with them, what follows is rarely a clean exit.

£30bn pension savings window opens for employers ahead of 2029 reforms

UK employers could unlock billions in National Insurance savings by expanding pension salary sacrifice schemes before new limits take effect in 2029.

Expat jobs ‘fail early as costs hit $79,000 per worker’

International assignments are ending early due to family strain, isolation and poor preparation, as rising costs increase pressure on employers.
- Advertisement -

The Great Employer Divide: What the evidence shows about employers that back parents and carers — and those that don’t

Understand the growing divide between organisations that effectively support working parents and carers — and those that don’t. This session shows how to turn employee experience data into a clear business case, linking care-related pressures to performance, retention and workforce stability.

Scott Mills exit puts spotlight on risk of ‘news vacuum’ in high-profile dismissals

Sudden departure of a long-serving BBC presenter raises questions about how employers manage high-profile dismissals and limit speculation.

Must read

Hanne Engberg: This is how you do appraisals

All too often, writes Hanne Engberg,  annual appraisals and periodical reviews are met with a sense of dread - this is how you can make them a better experience. 

Neville Henderson: Alternatives to zero-hours contracts for businesses

Here, Neville Henderson gives some tips for businesses to avoid the use of zero-hours contracts while still retaining workforce flexibility.
- Advertisement -

You might also likeRELATED
Recommended to you