CBI/ Pertemps Labour Market Update September 2014
The private sector continues to drive employment growth.
Read our labour market update
- This month’s update highlights a further strengthening of the UK’s labour market. In the three months to July employment increased by 74,000 and, while positive, this was the lowest increase seen in a year. There are now 30.6 million people in work, an employment rate of 59.6%. This slower growth has been reflected in more variable employment growth across the UK’s regions than we have reported in past months.
- Positively, it is the private sector that has been driving employment growth. Businesses in the private sector employed 82,000 more people in the three months to July which more than offset public sector employment losses (-8,000). The public sector now provides 17% of employment and the private sector 83%.
- In line with the increase in employment, the number of people unemployed has declined yet again and it is positive to see that young people have fared particularly well in this respect. The number of 16-24 year olds unemployed fell by a whole 106,000 in the three months to July, accounting for just under three quarters of the total fall in unemployment.
- Yet, whilst employment is up and unemployment down, the labour market picture remains a story of two halves with pay growth remaining worryingly weak. Subdued pay growth is also still below the rate of inflation pointing to a continued squeeze on living standards.