Older workers lead the way to a jobs record
UNEMPLOYMENT has fallen to a ten-year low, with record numbers of people in work.
A record employment rate for older workers has helped to drive the overall employment rate to 74.1 per cent – more than 31.4 million people – the highest since records began in 1971.
The number of people without work fell by 60,000 in a quarter, taking the jobless total to 1.69 million in the three months to December. Figures from the Office for national Statistics showed the unemployment rate of 5.1 per cent was the lowest since 2005.
Chancellor George Osborne said the results were ‘encouraging’ in the face of ‘significant turbulence in the global economy’, but warned against complacency.
‘We must stick to the plan to deliver economic security and build resilience,’ he said. ‘Today’s statistics show we’re moving towards our goal of full employment, but [there is] much more work to do.’
‘With a record number of people in work and unemployment and youth unemployment reaching ten-year lows, this is further evidence of the need to stick to the Government’s long-term plan to deliver economic security against the cocktail of risks affecting the world.’
The figures revealed nearly 8.4 million people aged between 50 and 64 were in work – 70.1 per cent of the age group. There were also around 1.2 million people aged over 65 in work – equivalent to one in ten. Increases in the state pension age for women have contributed to the growing number of older people in employment.
Baroness Altmann, the pensions minister, said the record employment rate for over-50s was ‘great news’ and showed older people were ‘invaluable for employers and our economy’.
Despite positive employment figures, wages increased by just 1.9 per cent in the year to December, down by 0.2 per cent on the previous month.
The data also showed a record 776,000 job vacancies across the economy.
The number of people classed as economically inactive, including those on long-term sick leave, looking after a relative or who have given up looking for work, continued a downward trend, with an 88,000 quarterly fall to 8.8 million. The number of UK nationals in work increased by 278,000 between October and December to 28.28 million, while for non-UK nationals the figure rose by 254,000 to 3.22million. The proportion of non-UK nationals in work in Britain has increased from 3.8 per cent in 1997 to 10.2 per cent.
The CBI’s neil Carberry said: ‘While it’s encouraging that employment continues to rise strongly, lacklustre pay growth underlines the need for a pick-up in productivity before wages can rise faster.
Frances O’Grady, the TUC general secretary, said: ‘It’s good news that employment is rising, but more needs to be done to ensure these jobs are decent quality. Putting money back into people’s pockets is essential to securing a strong recovery.’
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