It has been observed that in the last one year, the number of people in UK taking unemployment benefit has been the lowest this June. At the same time, the numbers of those already employed saw a rise which has been the fastest in the last 4 years. This clearly projects that the economy recovery is on track.
On the other hand, the Office for National Statistics projected a drop in the growth of earnings. With this, the Bank of England should be assured that the high inflation is not leading to increasing pay demands and swaying it for the policy to be kept loose. This above drop in the unemployment benefit dropped by more than 20,800 which was the expected figure. This has been the fifth consecutive month for this number to fall. This has further pushed down the count rate to 4.5 percent which is the lowest in the last 15 months.
However, despite the above progress with increased number of people being employed, it has been cautioned by analysts that there is a sudden decline in the pay growth. This could have been due to the prior weakness in the job market. This caters to further reasons for the Bank of England to maintain lower rates of interests for longer periods of time.
Apart from the above, it has also been observed that on an average, the growth in the weekly earnings was at an ease at 2.7 percent in May from the earlier 4.1 percent in April. Keeping the bonuses aside, it was seen that here the growth of earnings dropped from 1.9 percent to 1.8 percent.
It has been seen that the number of employed person increased by about 160,000 in the last three months till May. This has been the biggest jump since August 2006. However, this growth was because of the rapid increase in the number of part-time workers which saw an increase of 148,000.
The main reason behind these people option for a part-time job is because of the lack of opportunities for a full-time job. Off these people, most of them were women. Thus, the signs might seem bright but in reality this might mean time for hardship on the economic front which is drawing people towards employment.