Industry optimistic despite 5-year high in unemployment growth
Both unemployment and job vacancies are on the rise, according to the most recent data from the Office for National Statistics (ONS). However, industry figureheads are remaining optimistic.
In the three months to December 2017, unemployment rose at the fastest rate in almost five years, fuelled by an increase in unemployment of young people under the age of 24.
Whilst this might spark fears that the UK employment market is stretched to full capacity – in this potential scenario recruitment businesses would most likely take a hit – Ian Brinkley, Acting Chief Economist, CIPD said there are reasons to believe these figures are a one-off.
He said: “The substantial and unexpected rise in unemployment is a clear warning that the UK labour market may be running out of steam, but there are reasons to believe that this is a one-off, as opposed to the beginning of a larger employment crisis.
“There has still been a significant rise in employment dominated by an increase in full time, permanent jobs, while some of the rise in unemployment may be attributed to more students entering the labour market.”
The Recruitment and Employment Confederation(REC) also noted that the increase in the numbers of unemployed could be explained by a specific short-term factor.