Dire official jobs data
Dire official jobs data
Showing a record number are economically inactive sends out clear SOS message to incoming coalition government, says CIPD.
Dr John Philpott, Chief Economic Adviser at the Chartered Institute of Personnel and Development (CIPD) comments as follows on official labour market statistics published earlier today by the Office for National Statistics (ONS), which update the UK Labour Force Survey (LFS) measures of employment, unemployment and economic inactivity to the quarterly period January-March 2010, the count of people unemployed and claiming Jobseekers Allowance (JSA) to April 2010, and growth in average weekly earnings to March 2010:
If David Camerons incoming coalition government wanted reminding about the economic policy challenge that lies ahead, Conservative and Liberal Democrat ministers need look no further than todays dire official jobs figures. Higher unemployment (including more unemployed young people), fewer people in work (especially full-time work), an increase in redundancies, a fall in job vacancies, and especially a record number of economically inactive people sends out a clear SOS message on the state of the UK labour market.
How to combine the critically important task of cutting the fiscal deficit with meeting the equally important challenge of restoring full employment will provide Mr Cameron and his coalition partners with their sternest test. The rhetoric of getting Britain working again is about to meet reality.
CBI COMMENTS ON LATEST JOBS FIGURES
Commenting on the latest official unemployment figures, John Cridland, CBI Deputy Director-General, said:
These jobs figures show how fragile the recovery is, and we expect tough labour market conditions to continue for some time. It is notable that those working part-time because they cannot get a full-time job is over 1 million. Earnings growth, excluding bonuses, was largely driven by the public sector.
Unemployment figures confirm that jobs must be new Governments first priority
The Recruitment and Employment Confederation (REC), the representative body for the UK recruitment industry, has called on the new Government to focus on job creation and on boosting the UKs flexible labour market following this mornings disappointing unemployment figures.
Commenting on the latest figures and the implications for the new Government, Kevin Green, the RECs Chief Executive says:
"The latest unemployment figures are one of the first indicators that the new government has on the state of the economy and the fragility of the jobs market. Reducing unemployment and creating jobs should be the central priority of this new administration. Our flexible jobs market has already ensured that unemployment has not reached the levels seen in other European countries and will play a major role in helping people back into work.
Recent industry data has shown some improvement in employer confidence but there are real concerns that any upturn in job opportunities in the private sector could be counter-balanced by cuts in the public sector. Reducing the deficit is the other immediate priority but the government must focus on reforming public services rather than short term cuts. We need a well executed programme of productivity improvement and innovation in the delivery of critical public services.
The REC believes that three factors are key to creating jobs: economic growth, public sector reform and an improved regulatory environment. These areas are at the heart of the REC's Manifesto, launched earlier this year. Specific regulations that could threaten future job opportunities include the Agency Workers Regulations, new pensions rights which could jeopardise short term jobs and the operation of the Vetting and Barring Scheme. The REC will be writing to Ministers on these matters in due course.
Commenting on the regulatory landscape and the need to protect the flexibility of the UK labour market, Kevin Green concludes:
"The new Government must deliver the right economic climate for business to create the prosperity and jobs our country needs. There are a number of regulatory measures brought in by the last Government which threaten our flexible labour market. We call on the new Government to reconsider these urgently.