The number of temporary employees in the UK fell by 2.4% to a total of 1.56 million in the three-month period from December 2017 to February 2018, when compared to the same period a year ago, according to seasonally adjusted figures released by 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.

Turning to the overall labour market in the UK, ONS figures showed there were 32.26 million people in work, which was 427,000 more than for a year earlier. The employment rate (the proportion of people aged from 16 to 64 years who were in work) was 75.4%, higher than for a year earlier (74.6%) and the highest since comparable records began in 1971.

Meanwhile, the unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.2%, down from 4.7% for a year earlier and the lowest since 1975. Overall, there were 1.42 million unemployed people (people not in work but seeking and available to work), which was 136,000 fewer than for a year earlier.

"The labour market continues to be strong, and for the first time in almost a year, earnings have grown slightly after inflation has been taken into account,” senior ONS statistician Matt Hughes said. “Employment rose again in the three months to February, to reach its highest ever rate since records began. The unemployment rate fell, too, and is at its lowest since 1975.”

Latest estimates from the ONS showed that average weekly earnings for employees in the UK in nominal terms (not adjusted for price inflation) increased by 2.8%, both excluding and including bonuses, compared with a year earlier. When adjusted for price inflation, average weekly earnings increased by 0.2% excluding bonuses, and by 0.1% including bonuses, for the same period.

Recruitment & Employment Confederation (REC) director of policy Tom Hadley commented, “After a year-long wait, it’s a relief to see pay growth at its highest since summer 2015 and inflation coming down. Today’s data is a sign that employers are beginning to think seriously about how to keep existing staff, who could otherwise be lured away by companies with better pay offers.

Turning to layoffs, ONS figures showed that for the period from December 2017 to February 2018, 97,000 people had become redundant in the three months before the Labour Force Survey interviews, 9,000 fewer than for a year earlier.

Meanwhile, there were 44,000 more than for a year earlier over the same period.

Hadley also commented, “We simply don’t have the number of people in this country to fill vacancies, and if the government doesn’t recognise this it will hinder further growth of our economy.”