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UK employment rate reaches record level

The latest statistics show that in the UK, more people are in employment than at any time since the early ‘70s.

Since 1971, the Office of National Statistics has measured how many people of working age are actually working. For the first time, 75.8% of UK residents who are aged between 16 and 64 are in employment. The previous high was 75.2%.

In a press release, Alok Sharma, who is the Employment Minister, said about the figures:

“While the global economy is facing many challenges, particularly in sectors like manufacturing, these figures show the underlying resilience of our jobs market – once again delivering record employment levels.”

This is at a time when the rate of unemployment is also low, at just 4%. Interestingly, in what is a first for the UK, the unemployment rate among women dropped below the 4% mark.

Unsurprisingly, given these figures, demand for labour is high, which is bolstering the rate of wage growth. As a result, accountants from Birkenhead to Truro are being asked by their clients to work out what impact paying higher wages is going to have on their bottom lines.

Currently, wages are growing by around 1% per year. This is lower than during the pre-crisis era, when the rate of growth was around double that.

However, even a 1% increase can have a significant impact on the size of a firm’s wages bill. Only those companies who look ahead and factor this type of rising cost into their profit and loss reports can hope to remain profitable.

Posted by Mark
February 26, 2019
Research & Statistics

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