Unemployment falls as private sector hires, and public sector files

Unemployment fell by 36,000 in the three months to the end of March to 2.46 million, the second quarterly drop in a row, the Office for National Statistics said. Economists cautiously welcomed the figures, which suggested the economy was continuing to improve after the drastic slowdown in the final few months of last year.

However, all of the jobs created appeared to be in the private sector, with private companies starting to hire many of those sacked from the public sector. Economists warned however, that firms would not be able to continue to offset all the jobs being axed in the public sector. The figures indicated that 45,000 jobs had been lost in the public sector in the last three months, leaving 6.19 million on the taxpayers' payroll, and 83,000 jobs had been created in the private sector.

Nigel Meager, Director of the Institute for Employment Studies, said: "It is highly implausible, in the immediate future at least, that new private sector jobs will absorb the staff being thrown out from the public and voluntary sectors. The problem is exacerbated by the reluctance, confirmed in several recent surveys, of private employers to hire ex-public sector staff." The figures also showed that the number of people claiming Jobseeker's Allowance (JSA) raise by 12,400 in April to 1.47 million, with about half of the increase down to lone parents moving from income support to JSA. Under an initiative instituted by the previous Government, lone parents with children over the age of 7 can no longer receive income support; instead they need to claim JSA if they cannot find a job.

Economists said a rise will depend on how well the economy performs as the Government’s austerity cuts take hold.

Howard Archer, an economist at Global Insight, said: “MPC members … are currently still in no hurry to act given the recent weakness of the economy, the uncertain outlook and a lack of evidence that elevated inflation expectations are leading to higher wages.”




If you would like more information or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel   0844 576 33 08
Fax   0844 556 12 72
Email: scott@citylightspps.com