The number of temporary employees in the UK fell by 3.5% to a total of 1.59 million in the three-month period from May 2017 to July 2017 when compared to the same period a year ago according to seasonally adjusted figures by the Office for National Statistics (ONS).

Estimates from the ONS Labour Force Survey show that there were 32.14 million people in work for the three-month period to July 2017, an increase of 379,000 compared to a year earlier. The employment rate (the proportion of people aged from 16 to 64 who are in work) stood at 75.3% for the same period, the highest since comparable records began in 1971.

Figures from ONS also showed that the unemployment rate stood at 4.3%, down from 4.9% from a year earlier and the lowest since 1975. There were 1.46 million unemployed people, 175,000 fewer than a year earlier.

Average weekly earnings for employees in the UK in nominal terms (that is, not adjusted for price inflation) increased by 2.1%, both including and excluding bonuses, compared with a year earlier. Meanwhile, average weekly earnings for employees in the UK in real terms (that is, adjusted for price inflation) fell by 0.4%, both including and excluding bonuses, compared with a year earlier.

There were 774,000 job vacancies for June to August 2017, an increase of 24,000 compared to the previous year.

“Businesses continue to hire despite economic and political uncertainty,” Recruitment & Employment Confederation chief executive Kevin Green said. “The fact that 379,000 more people are in jobs compared to a year ago is great news. However, inflation is increasing and real wages are failing to keep up, so many people will be feeling a pay squeeze.”

“Our data suggests that in many areas of the jobs market employers are offering more money to new recruits in order to secure people with the skills they need. This is a response to the tightening labour market and skills shortages which are affecting many different sectors, from engineering to food production,” Green said.

 “With unemployment now at 4.3% it’s going to get even harder for employers to fill jobs,” Green said. “There are just 1.9 unemployed people for every vacancy. This challenge is being exacerbated by a fall in net migration from the EU. The idea that there are enough people in the UK ready and willing to take the jobs available is unrealistic. Businesses can only grow if they have access to the people and skills they need. It is essential that the government recognises this by developing an evidence-based immigration system that will support the economy.”