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UK – Number of temporary employees down 4.6%, unemployment falls to 4.1%

13 November 2018

The number of temporary employees in the UK decreased by 4.6% on a seasonally adjusted basis to a total of 1.53 million in the three-month period from July to September 2018 when compared to the same period a year ago, according to the Office for National Statistics.

Temporary workers are self-identified when surveyed by the ONS, and they include those who are on fixed-period contracts, agency temp workers, casual workers, seasonal workers and others in temporary work.

ONS figures also showed that the unemployment rate (the number of unemployed people as a proportion of all employed and unemployed people) was 4.1%; this was slightly higher than for the previous period from April to June 2018 but lower than for a year earlier (4.3%).

During the period there were 1.38 million unemployed people (people not in work but seeking and available to work), 43,000 fewer than for a year earlier.

Meanwhile, the employment rate was 75.5% during the period, higher than the 75.0% a year earlier.

ONS data also covered wages for UK employees. The latest estimates show that average weekly earnings for employees in nominal terms (that is, not adjusted for price inflation) increased by 3.2% excluding bonuses, and by 3.0% including bonuses, compared with a year earlier. Meanwhile, in real terms (that is, adjusted for price inflation) average weekly earnings increased by 0.9% excluding bonuses, and by 0.8% including bonuses, compared with a year earlier.

Turning to job vacancies, the ONS found that there were 845,000 job vacancies for the period from August to October 2018, this was 44,000 more than for a year earlier and the highest since comparable records began in 2001.

Recruitment & Employment Confederation (REC) director of policy, Tom Hadley, commented,  “Although unemployment has slightly increased, employers across many sectors are continuing to experience fundamental challenges in finding the staff and skills that they need. We already have record numbers of vacancies, and the signs are that these skills shortages will further intensify over the next few months as EU workers no longer find the UK an attractive place to work.”

“UK businesses will need to work with recruitment partners to innovate and review current hiring strategies – particularly, with regards to reaching out to under-represented groups,” Hadley said. “At the same time, the case for a pragmatic, evidence-based immigration strategy that reflects staffing needs across all sectors has never been clearer. It is critical that there is a comprehensive mobility deal with the EU post-Brexit, so firms have the capacity to invest and grow here in the UK.”

ONS senior statistician Matt Hughes commented, “The labour market is little changed on the previous three months, though still stronger than it was at this time last year.”

“With faster wage growth and more subdued inflation, real earnings have picked up noticeably in the last few months,” Hughes said. “However, real wage growth is below the level seen in 2015, and real wages have not yet returned to their 2008 levels. 

For the period from July to September 2018, 84,000 people had become redundant in the three months before the Labour Force Survey interviews. This was 18,000 fewer than for July to September 2017.