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Official labour market figures published today by the Office
for National Statistics (ONS) show a further steep rise
in UK unemployment in the February-April quarter.
John Philpott, Chief Economist at the Chartered Institute
of Personnel and Development (CIPD) described the figures
as ‘grim but not unexpected’.
He added that figures for the number of people claiming
Jobseeker’s Allowance (the claimant count) were ‘amazingly
good given what we know about the state of the jobs market,
though too puzzling to yet be seen as a genuine ‘green
shoot’.
With today’s ONS figures covering the first full
year since the labour market downturn started in 2008, Dr
Philpott today particularly highlights:
· Total employment down 0.4 million
· Private sector employment down 0.7 million
· Public sector employment up 0.25 million (5%)
· Biggest impact of job losses hitting men and young
people, when compared to women and the over 50s respectively
· Impact on manufacturing would have been greater
without efforts by employers to implement alternatives to
redundancy.
Dr Philpott, analysing today’s figures, said: “Anyone
looking for green shoots of recovery in today’s jobs
figures will have little to grasp at. The recorded quarterly
fall in employment and rise in unemployment still ranks
amongst the worst seen in the post-war era. Vacancies are
drying up at a rapid rate and redundancies go on rising.
The grim news thus continues, though this is not unexpected
given the dire state of the economy at the turn of the year."
He added that there is little in today’s figures
to suggest that unemployment will not rise above 3 million
next year.
"The one glimmer of hope is the claimant unemployment
count. Not only is the count increasing much more slowly
than might be expected but remarkably the number of people
flowing onto the count actually fell in May.
"If indicative of underlying economic factors –
rather than the result of the way in which benefits are
administered or a reduced propensity for unemployed people
to sign on at Jobcentres - these claimant figures are amazingly
good given what we know about the state of the jobs market,
though too puzzling to yet be seen as a genuine ‘green
shoot’."
Commenting on the figures, Liberal Democrat shadow work
and pensions secretary, Steve Webb, commented: "Labour's
pledge to end high unemployment is in tatters. Most worrying
is the rise in the number of people who have been out of
work for over six months or even a year.
"We know from the last recession that the longer people
have been out of work, the harder they find it to get another
job. It's too late to put someone on a special scheme when
they have been unemployed for a year. Jobcentres need to
be much more supportive from day one instead of sending
people away to go and look for jobs on the internet."
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