Unemployment Figures Fall Closer to Bank of England’s Target

Unemployment Figures Fall Closer to Bank of England’s Target

The rate of unemployment in the UK has dropped to 7.7% between May and July, down from 7.8% in the previous three months. This means that the number of unemployed now stands at 2.487 million, down from 2.511 million, which is good news for those still on the job search. Similarly, the number of those seeking Jobseekers Allowance has also fallen, by 32,600, to 1.402 million. This is the lowest that the figure has been since February 2009. Victoria Clarke at Investec says that this “suggests the market is recovering, much like the broader economy.”

The Bank of England has stated that a fall in the unemployment rate to 7% could trigger a rise in interest rates, which currently stand at 0.5%, their lowest rate since March 2009, but they believe that this won’t be achieved until 2016. But the fact of the matter is that employment rates are rising and companies are actively recruiting for new jobs.

jobsSo where are these jobs coming from? Between March and June this year public sector employment fell by 34,000, but private sector employment rose by 114,000. David Kern, chief economist at the British Chamber of Commerce stated that “the positive figures are a measure of the resilience and the flexibility of Britain’s labour market.” With the private sector doing so well, people can afford to feel optimistic about developing their careers, and start looking for jobs that really interest them, as opposed to jobs that simply pay the bills.

Many people are currently working part-time jobs, with 30% of men and 13.5% of women in part-time jobs say that they are doing so because they cannot find full-time employment. But, with the overall unemployment rate decreasing and the private sector expanding, this is an opportunity for people to start searching for full-time, rewarding careers.

It’s not all optimism though, as wages are falling in real terms. Though there has been a 1% increase in the rate of pay on this time last year, prices are actually rising by 2.8%, which means that employees are losing out in the end. But with the employment rate rising this lessens the competition in the job search and so those in jobs that are not satisfying or not fulfilling can let go of the mentality of holding onto a job because it’s better than nothing.

The Office for National Statistics states that 334,000 jobs have been created in the year to June, and that is something which should allow us all to feel a moment of optimism. So don’t wait any longer, it’s time to put yourself out there and see if you could be doing better. KennedyPearce Consulting specialises in Financial Recruitment, so let our job search be your first stop for jobs in Accountancy, Financial Control, HR, Management or PR, and get your career moving. Search here: 

 

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