15 October 2015
The latest labour market statistics show the unemployment rate is its lowest for seven years, reversing the recent.
George Osborne has predictably jumped on the news as evidence of his economic plan working. However, the stagnant labour market seen over the last seven years means there is a lot of catching up to do.
Furthermore, the picture is not as clear as some might with to present. The number of jobs paying less than the minimum wage is on the rise In some sectors, like construction, average pay remains well below pre-crisis levels.
Matthew Whittaker, the Resolution Foundation’s chief economist, said: “As the recovery builds, attention will turn to who is benefiting from it. The strong recent performance of wages in the low-paying retail sector is encouraging, but the picture is much less promising in manufacturing and construction.”
TUC General Secretary Frances O’Grady said:
“Renewed employment growth is welcome and while there are still years of lost ground to make up it’s good to see private sector wages rising. But public sector workers are increasingly falling behind. The challenge now is delivering a recovery that works for everyone across the country, regardless of which region or sector they work in.
“Despite today’s improvements, it is also clear that there is still spare capacity in the jobs market. With inflation at zero, and rising numbers of workers in temporary jobs looking for full-time work, there is no case for immediate rate rises.”