“Recent figures show the inflation rate has fallen slightly, down to 2.9%. No rush for a celebration just yet as prices are still high, but this does give some indication that the worst of the pay squeeze could be over. However at present, the knock-on-effects on costs has resulted in retailers cutting their prices to attract customers and stay afloat ahead of the tide imminently turning. Companies such as Tesco has resulted in cutting 1,700 shop floor jobs as part of a cost-cutting drive to improve its operational structure. On one hand, an example of a smart and competitive move for UK firms to adapt their business model to remain ahead of the times, to stay resilient and dynamic. Yet, another bitter pill of uncertainty for those currently in employment to swallow, given the volatile nature of the jobs market.
“Looking at the jobs market through an optimistic lens, it’s likely that UK pay growth in 2018, is set to pick up speed for jobseekers and employees, given the ongoing dark cloud that has sat above UK average salaries. Improving for the first time since 2015, UK salaries currently reside at £32,598, improving for the first time since 2015. With 102,000 more people in work than for June to August 2017, the employment rate has reached a new high of 75.3%, and sets the standard for the UK’s growing and enriched talent pool.”
“The UK jobs market is never too far away from Brexit negotiations, and the question remains as to whether its impact will take a toll on the number of EU workers willing to come to work in the UK. Despite no actual signs of this impact on the labour market at present, opportunities are rife for the UK productivity to be boosted by a strong economy and this calls for further investment in UK technology such as the development of 5G service.”
Main points for September to November 2017
- Estimates from the Labour Force Survey show that, between June to August 2017 and September to November 2017, the number of people in work increased, the number of unemployed people was little changed, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) decreased.
- There were 32.21 million people in work, 102,000 more than for June to August 2017 and 415,000 more than for a year earlier.
- The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.3%, higher than for a year earlier (74.5%) and the joint highest since comparable records began in 1971.
- There were 1.44 million unemployed people (people not in work but seeking and available to work), little changed compared with June to August 2017 but 160,000 fewer than for a year earlier.
- The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.3%, down from 4.8% for a year earlier and the joint lowest since 1975.
- There were 8.73 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 79,000 fewer than for June to August 2017 and 167,000 fewer than for a year earlier.
- The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.2%, lower than for a year earlier (21.7%) and the joint lowest since comparable records began in 1971.
- Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.5% including bonuses and by 2.4% excluding bonuses, compared with a year earlier.
- Latest estimates show that average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) fell by 0.2% including bonuses, and fell by 0.5% excluding bonuses, compared with a year earlier.
