Government: ” A Million More People in Work by 2020″

Government: ” A Million More People in Work by 2020″

According to Government officials over a million more people will be employed in the UK by the end of the current Parliament, 2020. The Government officials also forecasts that pay along with employment will be on the increase over the next five years.

This increase would mean that employment will rise to 32.2m.

autumn-statement2_2755701bThe Office for Budget Responsibility (OBR) based these estimates on the economic growth forecasts and the policies outlined in this year’s Autumn Statement, released earlier this month. Chancellor George Osborne repeated his intention to see the UK at “full employment”. In the past, he has used this phrase to refer to his plan to see the UK’s employment rate at the highest of any G7 economy.

However even with a 1.1 million increase in employment, The Conservatives will still fall short of the promises they made during the 2015 election in their party manifesto. Here Conservatives stated they would create another 2m jobs over the next parliament.

In the past three months, up until September, the latest figures from the Office for National Statistics showed employment climbing to a record 31.21m. While employment growth has until now been rapid, the OBR said that it expected this to slow as productivity picks up, a shift that reflects a maturing economic cycle.

The unemployment rate – the percentage of the labour force that is actively looking for work but is unable to find one – is expected to bottom out at 5.2 per cent in 2016 before edging back up to 5.4 per cent by 2020.

The Chancellor said that the OBR’s forecast showed “that the economy will grow robustly every year, living standards will rise every year”. The OBR predicts that pay growth will pick up in the years ahead, from 2.6pc in 2015, to 3.4pc in 2016, and then 3.7pc in the year after.

“Employment has grown strongly this year, taking it above 31 million for the first time. But we expect employment growth to slow over the forecast period as productivity growth recovers towards its historical average,” the OBR stated.

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