The number of temporary employees in the UK fell by 4.8% to a total of 1.56 million in the three-month period from April 2017 to June 2017 when compared to the same period a year ago, according to seasonally adjusted figures by the Office for National Statistics (ONS).

ONS estimates from the Labour Force Survey show that there were 32.07 million people in work, 125,000 more than for January to March 2017 and 338,000 more than for a year earlier. The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.1%, the highest since comparable records began in 1971.

Meanwhile, there were 883,000 people (not seasonally adjusted) in employment on “zero-hours contracts” in their main job, 20,000 fewer than for a year earlier. Self-employed workers increased by 23,000 to 4.81 million (15.0% of all people in work).

The figures also showed that there were 1.48 million unemployed people, 57,000 fewer than for January to March 2017 and 157,000 fewer than for a year earlier. The unemployment rate stood at 4.4%, down from 4.9% for a year earlier and the lowest since 1975.

The estimates from ONS also showed that average weekly earnings for employees in the UK in nominal terms (not adjusted for price inflation) increased by 2.1%, both including and excluding bonuses, compared with a year earlier. In real terms (adjusted for price inflation) average weekly earnings fell by 0.5%, both including and excluding bonuses, compared with a year earlier.

Between January to March 2017 and April to June 2017, total hours worked per week increased by 4.4 million to 1.03 billion. ONS also reported that there were 768,000 job vacancies for May to July 2017. This was 16,000 fewer than for February to April 2017 but 23,000 more than for a year earlier. The quarterly fall of 16,000 vacancies was mainly due to fewer vacancies reported by businesses employing less than 10 people.

Commenting on the labour market statistics, Recruitment & Employment Confederation chief executive Kevin Green said, “The UK jobs market is continuing to perform beyond expectations as job creation remains strong and employment is at a record high.”

“However, the UK is becoming a less popular destination for EU workers. The number of EU nationals working in the UK is increasing, but at a much slower rate than any time in the last three years. Employers are struggling to find people to fill roles in engineering, construction and health, so there is an increasing risk that new jobs will go unfilled,” Green said.

“As competition for talent intensifies, REC data shows that employers are increasing starting salaries to tempt candidates to move jobs. However for their existing staff, wage increases are not keeping up with inflation. The conclusion is that talking to a recruiter and finding a new job is the best way to get a bigger pay packet,” Green said.