Drop in unemployment welcome news but jobs market remains volatile says REC

Filed under Press release

Wednesday, 13 April 2011

Released on 13 April 2011

Today’s jobs figures show a drop of 17,000 in the number of people out of work in the three months until February with the current number now standing at 2.48 million. Most commentators had expected another small increase in the total.

Commenting on the latest figures, Tom Hadley, the REC's Director of Policy and Professional Services, said:

“Today’s figures must not mask the fact that our jobs market remains extremely fragile. However, the slight decrease in the number of unemployed is welcome news and fits with the latest REC/KPMG Report on Jobs. This showed vacancies rising to their highest rate since April last year and gave a first tentative sign that the private sector may be able to absorb public sector job losses.

Other data, from the REC’s JobsOutlook, shows that a third of employers expect to increase their permanent workforce in the next year. This ties in with economic forecasts that private sector investment and trade are picking up and will accelerate in the second half of the year.

“Recent data and today’s official figures may be encouraging but the immediate outlook is that our jobs market will remain volatile and that we will not see any marked and sustained decline in unemployment until the very end of 2011. One urgent priority remains youth unemployment which is still edging towards the one million mark.

“As well as building better bridges into the world of work through apprenticeships, internships and more effective careers guidance, the Government needs to consider more incentives for employers such as a National Insurance holiday when recruiting young jobseekers.”

 

 

Contact: Ed Sexton

Phone: 020 7009 2192

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