Responding to today’s official labour market
figures, showing that the number of people in work increased
and the number of unemployed decreased between March-May 2017,
Seamus Nevin, Head of Employment and Skills Policy at the
Institute of Directors, said:
“Today’s figures are a great demonstration of the strength
and benefits of the UK’s flexible labour market. There are now 32
million people in work – 324,000 more people than last year –
meaning the employment rate is, again, at a new record high
(74.9%). The unemployment rate (4.5%) is also at its lowest since
1975.
“Part of this success is undoubtedly thanks to the ‘gig’ economy
and modern flexible employment practices. As the Taylor Review
acknowledged yesterday, and today’s ONS figures back up, easier
routes into employment and self-employment have led to rising
workplace participation for those who have historically struggled
to find a job, notably single parents, disabled individuals,
and the long-term unemployed.
“However, the fact that real earnings (including bonuses) are
down 0.7% on the year is a concern. The spike in inflation is
putting a squeeze on household disposable income at a time when
poor productivity means wage growth remains slow. Economic and
political uncertainty is also having an effect on businesses. A
recent IoD survey showed a dramatic drop in confidence, which is
concerning if it begins to feed into investment and wage
decisions. Company directors are keen to see quick agreement on
bridging arrangements with the EU so that business can start to
plan for the future, which will ultimately boost productivity and
income for workers.”
