The Office for National Statistics has released its latest report on the UK labour market last month, painting a healthy picture of employment and work in the UK.
The figures cover every aspect of the labour market and delve into the outlook going forward. Here, we’ll take a closer look at the numbers, what they mean for the UK economy as a whole and for SMEs in particular.
Earnings up, Unemployment Down
The latest tranche of figures from the ONS revealed that there are now 32.34 million people in work in the UK. This is a sizeable increase of 396,000 in the last year, illustrating that businesses are shaking off the restrictions of the austerity period and not fretting too much about any economic impacts related to the UK exiting the European Union.
At the same time, unemployment dropped to 1.42 million, the lowest it has been since the ONS began collecting figures in 1971. Compared to the same time last year, this represents a reduction of 116,000. This paints a healthy picture of the job market and overall productivity for UK firms.
There was also good news for workers as average weekly earnings rose by 2.9 percent over the previous year. This can only mean good news for the UK economy as people see more monetary inflow and, in turn, will be more willing to spend. Contrasting with previous years, when disposable income was an almost dead concept for many consumers, this represents good news for UK businesses of all kinds.
Workforce Jobs
The ONS report also takes measure of workforce jobs, which focuses on the different roles that workers fill. Whereas employment is an estimate of people in work – where one person may have more than one job – workforce examines the types of roles people are filling.
A number of sectors saw considerable growth in their workforce, with teaching being the main outlier, showing a quite drastic reduction in its numbers. The manufacturing, construction, administrative and human health fields saw very healthy growth.
For small and medium businesses operating in this sector, the numbers are very encouraging. The increased numbers in workforce jobs means that these vital areas of the UK economy are seeing expansion and, therefore, increased business. In the past few years, employers – especially those in smaller and medium-sized concerns – have been reticent to take on new employees due to volatile economic factors. Now, it seems, employers of all sizes in these sectors are feeling a renewed sense of optimism.
If your SME is feeling buoyant and has expansion plans, why not speak to GIC Capital about our business loans and business overdraft options to help you move forwards?