Unemployment decline “almost impossible to explain”
The Work Foundation has called the recent drop in unemployment levels “almost impossible to explain”.
The Office for National Statistics (ONS) revealed that just 8 per cent of the economically active population – those who are able to work – were out of a job, down from the 8.2 per cent witnessed in the previous quarter, freshbusinessthinking.com reports.
The Work Foundation, a think tank, found the drop strange given it came after a sustained period of economic contraction.
“On balance, we still expect the labour market to go into reverse in the next few months, especially if the Eurozone economies continue to contract,” The Work Foundation’s director, Ian Brinkley, told hrmagazine.co.uk.
“But if the UK labour market goes on apparently defying economic gravity, we also need to take a hard look at whether the current GDP statistics are giving too pessimistic a view of the economy.”
The figures, although surprising, look set to remain in place for the long term; with many of the new jobs created being permanent, full-time positions.
This, Brinkley concluded, could signal a period of sustained growth. New job creations may offset any damages the double-dip recession could have had on the economy. With many of the new opportunities coming from jobs in London, the capital could be one of the first to make the move out of economic uncertainty.