oureconomyuk

Unemployment dips but the numbers are far from comforting

In Uncategorized on August 12, 2010 at 12:52 pm

BIRMINGHAM, ENGLAND - FEBRUARY 24:  John Bull alias Ray Egan poses outside the LDV van factory in Washwood Heath on February 24, 2009 in Birmingham, England. Self styled campaigner Ray Egan is backing the workers at LDV who could all lose their jobs after the government told the troubled van maker that it would not bail them out with £30m in loans.  (Photo by Christopher Furlong/Getty Images)

Unemployment in the UK declined by 49,000 to 2.46m in the last quarter. However, the number of claimants seeking jobseeker’s allowance fell by only 3,800 which is less than what many economists had expected, raising concerns about a slower than expected recovery.

Here are some other numbers to take home from recent reports and statistics on the UK job market:

  • The number of 18 to 24 years old who are out of jobs for two or more years increased by 42% over the last year to reach 72,000. In the same age group, numbers of those unemployed for over a year has increased from 104,000 to 184,000. According to the Recruitment and Employment Confederation’s Youth Employment Taskforce, the direct cost of youth unemployment is £4.7bn a year.
  • Jobseekers over the age of 50 are finding it particularly difficult to get back into the market. Numbers of those out of job for more than 12 months has increased by 52% over a year to reach 170,000, the worst numbers in a decade. While the government plans to extend the retirement age limit, the job market is struggling to find place for a number of over-50 workers.
  • An extra 40,000 people over the age of 65 have taken up jobs amidst fears of reductions in expected pensions.
  • According to the Chartered Institute of Personnel and Development, it is likely that private sector job creation will not keep pace with public sector cuts for at least the next two years, as nearly one-third of employers, among the 600 surveyed across all sectors, were looking to downsize in the coming three months.
  • Another survey among businesses in Wales shows that around 84% of those businesses have no plans to recruit this year.
  • Scotland saw a rise in unemployment by 34,000 over the last quarter to reach 223,000, or an 8.4% unemployment rate compared to 7.8% for the UK.
  • Vacancies have increased by 9,000 over the quarter to reach 481,000.
  • Real wages continue to decline among those employed as earnings growth rate falls behind the rate of inflation.
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