New earnings and labour market data published today show a mixed picture as both employment and unemployment grew and economic inactivity fell back. Most of the jobs growth was among part-time employees. The growth rate of average earnings in the private sector was 2.3 per cent in December, up from 2.1 per cent in November. The growth rate of earnings in the public sector was 1.1 per cent in December, down from 1.4 per cent in November.
The number of people in employment aged 16 and over increased by 60,000 on the quarter to December 2011, and by 7,000 on the year to reach 29.13 million. The quarterly increase in employment was mainly due to an increase of 90,000 in the number of part-time employees to reach 6.61 million. The number of full-time employees fell by 26,000 on the quarter.
The number of employees and self-employed who are working part-time because they could not find a full-time job increased by 83,000 on the quarter to December to reach 1.35 million, the highest figure since comparable records began in 1992. This was a significant trend in the recession period and has continued in the austerity period since, as people have tried to maintain their household income rather than risk unemployment.
The total number of unemployed increased by 48,000 over the quarter, to reach 2.67 million. The number of unemployed people aged from 16 to 24 increased by 22,000 over the quarter to reach 1.04 million: this figure includes 307,000 people in full-time education who were looking for work.
Average Weekly Earnings (AWE) across the whole economy rose by 2.0 per cent in the year to December, with the rise in the private sector at twice the rate in the public sector. The rise in the private sector would have been higher but for low growth of 1.4 per cent in manufacturing. AWE earnings rose by 3.5 per cent in finance and business services, by 2.1 per cent in wholesale, retail and hospitality and by 2.4 per cent in construction.
The AWE earning series takes account of the changing composition of the workforce. This means that the large growth in part-time working is exerting a downward pressure on the averages of what is being earned. Earnings growth in wholesale, retailing and hospitality have been very sluggish over the past year and increasing numbers of part-time workers may be part of the explanation.
In monetary form, average weekly earnings were £615 in finance and business services in December 2011 over twice as much as in wholesale, retail and hospitality where earnings averaged £302. Average weekly earnings in the public sector were £466, half way between the finance sector and the wholesale and retail sector.
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9 March 2012 at 02:46
Andrew
Hmm. They all look to represent rhoguly 50 000 jobs each time. I could surmise that the two immediately on the back of recession might indicate an increased need for social security provision and a corresponding increase in staff, perhaps hired on a contractual basis and then given the flick when private sector employment growth significantly resumed.The third spike ocurrs at the same time as the Howard government is desperately trying to sell workchoices and avoid having the public giving them the order of the boot. Whether or not this is significant at all I couldn’t say.