The number of temporary employees fell by 1.9% to a total of 1.53 million in the three-month period of January to March 2017 when compared to the same period a year ago, according to seasonally adjusted figures by the Office for National Statistics (ONS).

The figures from ONS also showed the employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.8%, the highest since comparable records began in 1971.

Furthermore, the unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.6%, down from 5.1% for a year earlier and the lowest since 1975. There were 1.54 million unemployed people during this period, 152,000 fewer than for a year earlier.

Meanwhile, ONS estimates show that average weekly earnings for employees in the UK in nominal terms (not adjusted for price inflation) increased by 2.4% including bonuses, and by 2.1% excluding bonuses, compared with a year earlier. Average weekly earnings for employees in the UK in real terms increased by 0.1% including bonuses, but fell by 0.2% excluding bonuses, compared with a year earlier.

The number of self-employed workers increased by 82,000 to 4.78 million (15.0% of all people in work), compared to the same period last year.

Recruitment & Employment Confederation Chief Executive Kevin Green commented,

“This is more evidence of the growing skills crisis in the UK, and backs up the REC’s data showing falling candidate availability, Green said. “With real wages now falling, the main way to secure a pay rise is to move jobs. Recruiters are reporting that starting salaries continue to increase as employers offer pay incentives to attract the talent they need. At the same time, signs that the economy is creaking could be putting some people off from moving jobs and taking the associated risks. 

“Whichever party forms a government after 8 June will have to get to grips with multiple challenges to keep the jobs market on course. Addressing the skills shortage needs to be a priority, because businesses will suffer if they are unable to fill vacancies. We need serious investment in skills for UK jobseekers, as well as an approach to immigration which is agile and pragmatic enough to meet labour market needs.  

Julia Kermode, Chief Executive of the Freelancer & Contractor Services Association, also commented:

“It is interesting to see that this quarter’s increase in total workforce numbers was almost entirely driven by permanent employment, which indicates that businesses confidence is growing as firms add more people to their headcount.”