Jobs surge puts record number of Britons in work

Private sector credited with half-million boost

MORE people are working in Britain than at any time since records began, official figures revealed yesterday.

The number in work jumped by 510,000 over the last year to just under 30million, the Office for National Statistics said.

Employment Minister Mark Hoban hailed the highest number employed since 1971 as a ‘real landmark’. He said: ‘Despite the tough economic times, the private sector continues to create jobs and our welfare reforms are encouraging people to return to work.

‘As the Government takes the axe to the bloated public sector, the private sector, which employs 80 per cent of the country’s workforce, is defying fears by managing to create jobs.’

In the three months to August, unemployment dropped by 50,000 to 2.53million.

The number of private sector workers has jumped by more than a million since the Coalition came to power, while the number of state workers has dropped by 630,000 to 5.66million,

There are now a record 4.8million private sector businesses in the UK, an increase of more than 250,000 over the last year, the largest increase on record.

However experts are confused by the robustness of the employment statistics compared with figures showing Britain is in the grip of a double-dip recession.

From October 2011 until June 2012, ONS figures show Britain’s economic output has been in negative territory.

Although record numbers are in work, many are being forced to do part-time jobs when they are desperate to work full-time.

Of the 510,000 increase in employment over the last year, 353,000 – around 70 per cent – are working part-time, but only 157,000 are full-time.

There are now 8.1million part-time workers, the largest number ever logged by the ONS since its records began 20 years ago.

John Salt, director of the website Totaljobs.com said: ‘ While under- employment remains a concern, indicated by the very high levels of parttime work, there are encouraging signs that we are beginning to turn a corner.

‘Everyone should greet the figures with a sigh of relief.’

But some analysts pointed to the effect the Olympics had had on the job figures. Around half of the increase in employment between June and August was in London.

A Bank of England report yesterday warned of storm clouds ahead as many bosses said they have no plans to hire new staff. It said: ‘Employment intentions indicated there would be little overall job creation in the private sector over the next six months.’

Firms which are exposed to weaker spending by households and the public sector ‘continue to shed jobs,’ it said.

There was also gloomy news for older workers who lose their jobs. The number of over-50s claiming Jobseeker’s Allowance for more than 12 months has jumped by more than 60 per cent over the last year.

In September, official figures showed there were 91,300 in this age group who had been on the benefit for more than a year, the largest number since 1997.

It comes as increases in the state pension age mean people must wait longer before they can get the handout.

David Cameron will today pledge to ‘unlock’ billions of pounds of infrastructure projects with a fresh round of reforms to the planning system.

He will insist the Government is committed to ‘ slashing unnecessary bureaucracy, giving business the confidence to invest, unlocking big infrastructure projects and supporting hard-working people to realise their dreams’.

ONLY a starry- eyed Pollyanna would declare the economy is on its way back to robust health. But there’s surely encouragement in yesterday’s jobs figures, showing record numbers in work and unemployment still going down. True, the headlines mask another sharp rise in the numbers in part-time jobs, including 1.4million who would prefer full-time work. But the benefits claimant count – the most reliable guide to the jobs market – remains on a slow but steady downhill path, while especially cheering is the 62,000 drop in youth unemployment.

Indeed, the overall picture suggests a growing private sector more than making up for state job cuts, while welfare reforms are nudging benefits claimants into work, as intended. Add signs of revival in consumer spending – and predictions that Britain may keep step with a US recovery – and the outlook seems brighter than many dared hope. But isn’t there far more George Osborne should be doing to help firms seize the chances opening up to them? Only yesterday Rolls-Royce, with its £60billion in orders, revealed it has been forced to lend money to its own suppliers, because the banks won’t. From day one, the Coalition promised to channel finance to small businesses. How many opportunities must slip away before the cash comes through?