The coalition government would have you believe that the beginnings of an economic recovery are taking root. Recently, the economy has been growing again, albeit from a low base following the prolonged downturn which lasted a few years. One consequence of this slight rebound concerns employment figures, which for the last three months of 2013 make pretty good reading.
For the last quarter, it was revealed that the number of people out of work dropped by around 125,000, showing that the job market is on the rise after some turbulent times. Meanwhile, the increase in the number of job vacancies reached a 15-year high, giving many jobseekers reason to believe that their search for paid employment may be over sooner rather than later.
Opportunities not what they seem
For job hunters, a rapid increase in the number of job vacancies may seem like welcome news, but what type of vacancies are actually arising? Many of them are actually part-time, with full-time roles still seeming scarce in many sectors. However, there may be some surprising good news on the horizon for recent graduates, who have been hit particularly hard by a lack of job opportunities.
The total number of vacancies created specifically for recent university graduates could be set to increase by just over 10% in the coming months according to experts. Openings in sectors such as IT, energy and telecoms are likely to see even bigger increases in graduate vacancies than the national average, while female workers may be in a good position to benefit from these green shoots.
Two-way street
In the previous quarter, as part of the same set of stats, the Office for National Statistics (ONS) revealed that 14 million women across the UK are now in either full-time or part-time work. This figure may seem like one to be lauded, but there is a fly in the ointment in the form of a growing gender pay gap, as median pay for women fell during the same period.
The total number of people no longer out of work, particularly women, could be attributed to an increase in those declaring themselves to be self-employed. In many cases, self-employment can turn out to be less lucrative than salaried full-time work, thereby distorting pay figures to some degree.
Inflation static
Looking deeper into the stats from the ONS for the end of 2013, the actual rate of unemployment actually rose slightly to 7.2%, actually confusing the markets who expected it to remain at 7.1%. Some believe that inflation is likely to remain static as a result of this particular figure. Rosemary Okolie, Market Analyst at City Index, said:
“The small rise in unemployment rate to 7.2% was somewhat surprising given that expectations were that the rate would likely stay the same. It does, however, reinforce belief that interest rates are likely to stay put for the time being.
“The initial interest rate rise target was an unemployment rate of 7%, however additional variables were added last week, putting at bay an imminent interest rate rise. The latest unemployment rate reinforces that view,” she added.
