“The dice has been thrown and the jobs market needs to adjust rapidly. The last couple of weeks have tested nerves, but now political calm is returning and it’s time to get back to work.
“The labour market is proving resilient, with employment rising in Q2 despite pre-Brexit uncertainty. We saw less movement between jobs in the run-up to the vote, but unemployment fell to an 11 year low. Many things remain unclear though. Workers are waiting for news on employment law changes – and also whether EU workers can still stay in the country long-term. Those in finance are particularly nervous as banks eye-up opportunities abroad. Decisions are still needed so employees and employers know where they stand.
“As long as the doom and gloom merchants don't talk us into recession, the next few months could see a surge in hiring after a modest June, as demand for workers bounces back. We are starting to see signs of this in our up-to-the-minute data on hiring patterns, which is 2 to 3 months ahead of the ONS data. Even in London, daily job postings were up 1.3% last week. The property sector has also seen growth in opportunities after the vote. The strength of the UK jobs market is seeing it through the mighty challenge.”
ONS Labour Market Statistics, July 2016
- Between the 3 months to February 2016 and March to May 2016, the number of people in work increased. The number of unemployed people and the number of people not working and not seeking or available to work (economically inactive) fell.
- There were 31.70 million people in work, 176,000 more than for the 3 months to February 2016 and 624,000 more than for a year earlier.
- The employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.4%, the highest since comparable records began in 1971.
- The unemployment rate was 4.9%, down from 5.6% for a year earlier. The last time it was lower was for July to September 2005.
- Average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.3% including bonuses.
