· News

Unemployment only falls by 8,000

Unemployment in the UK has fallen by 8,000 to 2.47 million in the three months to July, according to figures released this morning by the Office of National Statistics (ONS).

The ONS statistics show the UK unemployment rate remained at 7.8% but those out of work and seeking unemployment benefit - rose by 2,300 in August to 1.47 million.

Commenting on the findings, Steven Kirkpatrick, managing director, Adecco, said: "The ONS figures are good news and are consistent with what we are seeing on the ground. Whilst employers are still cautious, our branches across the UK are reporting steady activity across temporary, permanent, full and part-time recruitment. High demand for skilled candidates in sales, administration, catering and customer service also indicate growth in the jobs market. Those who find themselves out of work should consider temporary work to broaden their skills portfolio and get back on the jobs ladder."

And Brian Johnson, an insolvency practitioner at HW Fisher & Company chartered accountants, added: "Unemployment didn't fall as much as some had expected, but at least it fell. However, we believe that unemployment will begin to rise again in 2011. The rise in the claimant count is perhaps more indicative of the future direction of unemployment levels. The omens for unemployment are not good.

"Next month's Spending Review could determine the fate of the economy — and unemployment levels — for several years to come. We expect the fallout from the review to be brutal.

"The effect of public sector cuts on the private sector has already been demonstrated through Connaught, and this is only the tip of the iceberg. We will soon know whether the Goverment's aggressive deficit reduction plans will lead to a double-dip recession.


"The Government is banking on the private sector to drive the economy forward, specifically the UK's SMEs.

"But a significant percentage of SMEs either lack the confidence to invest or are unable to secure the necessary funding from the banks or other institutions.
 
"Without money you cannot grow and companies that do not grow do not take on more staff.
 
"Today's youth specifically are in an impossible position. Either they cannot get into university, or they cannot afford university full stop. At the same time, competition for jobs at this level of the employment market is intense. What is happening in the youth jobs sector could adversely affect our economy for many, many years to come.
 
"There is also very much a North/South divide. The situation in the north is already far worse than it is in the south and is likely to deteriorate at a faster rate."

And Nigel Meager, director of the Institute for Employment Studies, said: "While the employment data covering the period May to July were generally strong, with growing employment and a small fall in the broader measure of unemployment, there remain reasons for concern. The rise in claimant unemployment in August, although modest, is an unwelcome reminder of how fragile the labour market remains. And, as the most up-to-date indicator of what is happening, it suggests a weakening picture.

"The fall in the number of vacancies in the three months to August was driven entirely by the drying up of public sector vacancies, which was barely offset by limited growth in private sector opportunities. The figures highlight how delicate the balance will be over the coming months, and suggest that current private sector growth may not be adequate to ameliorate the impacts of reduced public sector employment."