Alarm bells ring despite job figures

Oct 18 2007 by Iain Laing, The Journal

EXPERTS have given gloomy predictions about jobs, despite official figures showing a record number of people in work and the 12th consecutive monthly fall in the number of people claiming jobseeker’s allowance.

The Government hailed the new employment level of 29.1 million, the highest since comparable records began in 1971, and said full employment within a generation was in reach.

But the Chartered Institute of Personnel and Development (CIPD) warned that unemployment was likely to rise next year, while the Work Foundation said the labour market was “stalling”.

The number of people claiming jobseeker’s allowance fell by 12,800 in September to a two-year low of 835,800, the 12th consecutive monthly fall, while total unemployment, including those not eligible for benefit, was 5,000 lower in the quarter to August at 1.65m.

The figures were marred by new data showing that the number of people classed as economically inactive increased by 41,000 in the latest quarter to reach a record high of 7.97 million.

The number of manufacturing jobs continued to fall, down by 42,000 in the three months to August compared with a year ago to 2.95 million, the lowest on record. Average earnings increased by 3.7% in the year to August, up by 0.2% compared with the previous month. Earnings growth in private firms was 4%, compared with 2.9% in the public sector, said the Office for National Statistics.

There were almost 670,000 job vacancies in the economy in the last three months, an increase of more than 21,000 over the previous quarter.

Employment Minister Caroline Flint said: “Today’s vacancy figures, combined with the involvement of over 100 major companies in the local employment partnership scheme (LEP), mean those who are able to work can find a job.

“Those who, 10 years ago, would have been left behind now have the chance to clock in, working for themselves and providing for their families.” CBI regional director Sarah Green said the growing demand for labour was caused by the growth of business in the region, but warned it was vital to improve skills of job seekers and those already in employment or risk economic growth being held back. “Many employers, in particular those requiring engineering skills, are already suffering from significant skills shortages,” she said.

TUC general secretary Brendan Barber said: “This was another strong month for jobs and employment, and a strong testament to the underlying strength of the UK economy. But the continuing decline in manufacturing jobs should ring alarm bells. The UK needs a balanced economy.”