Record numbers in work as jobless total falls to seven year low

The ILO jobless rate came in at 5.2 percent in August to October period, which was below 5.3 percent seen in three months to September.

From the period August to October 2015, 73.9% of people aged from 16 to 64 were in work, the highest employment rate since comparable records began in 1971.

United Kingdom wages have increased by 2.4% including bonuses since a year ago, and by 2% excluding bonuses.

The high May-Jul wage growth was due to a relatively sharp increase in July 2015 (2.9%), while the lower figure for Aug-Oct was for the relatively low figure for October (1.7%).

“Granted, November’s timelier claimant count measure saw the fourth consecutive monthly rise”.

She stated: “There is rising employment, a fall in unemployment and further excellent news for youth employment”.

In the United States, by contrast, strong U.S. jobs numbers have added to expectations that the Federal Reserve will raise interest rates later on Wednesday.

“However, we will continue to channel every power at our disposal into growing the economy, increasing employment, lowering unemployment and removing any barriers to the jobs market which may remain”. There are now 22.88 million people working full-time, 338,000 more than a year earlier, and 8.42 million people working part-time, 167,000 more than a year earlier.

Internationally the situation is no better with the International Labour Organisation revealing that youth unemployment on a global scale reached a high of 13% in 2009.

“The latest UK figures show a slowdown in wage growth, adding to evidence that there is no need for the Bank of England’s Monetary Policy Committee to follow the Federal Reserve in raising interest rates just yet”, said Scott Bowman, UK economist at Capital Economics.

“Overall these figures demonstrate that our flexible and vibrant labour market remains a source of strength for the United Kingdom economy”. The facts are impressive, and, given the turbulence which is affecting many parts of the world, worth repeating. All of this indicates we are closing in on full employment.

“Earnings proceed to develop in actual phrases, though at a slower fee than we have now seen in current months”.

“What this means for wages and inflation over the next 12 months, however, is less clear”. But wage growth has outpaced productivity for much of this year, and in the last few months pay increases have trailed off.

Perhaps employers do not feel compelled to increase salaries because workers’ spending power is increasing anyway.