Official figures show employment levels rising, fewer redundancies and a fall in the jobless count, yet experts warn of tough times ahead.
Statistics from the Office for National Statistics (ONS) show a rise in employment of 152,000 over the quarter reaching 29.51 million. The highest figure since comparable records began in 1971.
The jobless count has also fallen by 39,000 over the quarter and by 90,000 over the year, to reach 1.61 million.
Yet despite this, pay pressures remain subdued.
John Philpott, chief economist at the Chartered Institute of Personnel and Development (CIPD), warned that the latest official figures were at odds with other indicators of the strength of demand for workers, which could spell tougher times ahead.
“It is still too early, however, to breathe a sigh of relief,” he added. “Much will depend on the severity of the economic slowdown and the impact this has on business and consumer confidence. Indeed the official jobs statistics paint a far rosier picture of the state of the labour market than independent surveys, including those conducted regularly by the CIPD and KPMG. These point to weaker hiring intentions and the prospect of substantial job losses – and are somewhat more in keeping with news emerging daily from the City and those parts of retail sector hardest hit when increasingly cash strapped households cut back on non-essential spending.”
