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UK – Number of temporary employees up 0.2%, employment rate reaches record high

19 March 2019

The number of seasonally adjusted temporary employees in the UK increased slightly by 0.2% year-over -year to a total of 1.55 million for the three months ended January 2019, according to the latest report published today by the Office of National Statistics (ONS).

The number of temporary employees as a percentage of total employment was 5.6%, steady compared to the same period a year ago.

The ONS figures relate to all temporary workers, not just temporary agency workers.

Compared to the previous period ended in December 2018, the number of temporary employees also saw a slight increase of 0.2%

Of the 1.55 million temporary employees during the period ended December 2018, approximately 398,200 were temporary because they could not find a permanent job; 464,200 did not want a permanent job; 127,600 had a contract with a period of training; and 563,100 cited other reasons.

In the three months ended January 2019, the UK employment rate was estimated at 76.1%, higher than for a year earlier (75.3%) and the highest figure on record.

Meanwhile, the UK unemployment rate was estimated at 3.9%; it has not been lower since November 1974 to January 1975.

Average weekly earnings for employees (excluding bonuses) were estimated to have increased by 3.4%, before adjusting for inflation, and by 1.4%, after adjusting for inflation, compared with a year earlier.

Including bonuses, average weekly earnings for employees were estimated to have increased by 3.4%, before adjusting for inflation, and by 1.5%, after adjusting for inflation, compared with a year earlier.

Turning to job vacancies, for the period from December 2018 to February 2019 there were an estimated 854,000 vacancies in the UK, 39,000 more than a year earlier.

The UK economic inactivity rate was estimated at 20.7%, lower than for a year earlier (21.2%) and the lowest figure on record.

ONS senior statistician Matt Hughes commented, “The employment rate has reached a new record high while the proportion of people who are neither working nor looking for a job – the so-called ‘economic inactivity rate’– is at a new record low. The unemployment rate has also fallen below 4% for the first time since early 1975.”

Recruitment & Employment Confederation Chief Executive Neil Carberry, also commented on today’s labour market release, “Today’s figures demonstrate the continued strength of the UK labour market, with recruiters helping firms hire the right staff for them to prosper amidst pressing skills shortages. But they need a Brexit deal that helps maintain and enhance this strong performance, rather than gambling with it.”

“Uncertainty is threatening to jeopardise this healthy position, with 4 out of 5 recruiters polled by the REC saying that no-deal would have a negative effect on the jobs market,” Carberry said. “As business confidence drops, the political establishment needs to find a solution that can help protect people’s jobs and livelihoods.”