Five pieces of bad news from today's employment figures

Including: vacancies down, youth unemployment up and part-time workers up.

After several months of positive employment figures, today's are decidedly negative. Unemployment, which was expected to fall by around 10,000, has actually risen by 38,000 to 2.49m (7.9 per cent). But that's not the only grim statistic in today's data release, below are five other worrying trends.

1. Vacancies down.

The number of vacancies is down 22,000 over the quarter and down 28,000 over the year to 449,000, the lowest number since the three months to November 2009.

2. Youth unemployment up

Youth unemployment has risen by 15,000 to 949,000 (20.2 per cent) over the last quarter. There is a risk that it will rise further as thousands of A-level students enter the labour market for the first time.

The unemployment rate for 16-24 year olds not in full-time education has risen to 18.8 per cent, up 0.5 per cent from the three months to March.

3. Involuntary part-time workers up

The number of people working part-time because they can't find a full-time job has risen to a record high of 1.26m (see graph), up 7 per cent on the quarter and 17 per cent on the year. 16 per cent of Britain's 7.9m part-time workers fall into this category.

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4. Involuntary temporary workers up

The number of temporary workers who could not find a permanent job (as opposed to those who did not want one) has risen to 601,000, up 29,000 (5.1 per cent) over the last three months and up 33,000 (5.8 per cent) over the last year. 37 per cent of the UK's 1.6m temporary workers fall into this category.

5. Women hit hardest

Female unemployment rose by 21,000 over the quarter (male unemployment rose by 18,000) to reach 1.05m, the highest figure since 1988. With women making up 65 per cent of the public sector workforce, it's unsurprising that they've been hit hardest by the coalition's cuts.

Women also bore the brunt of redundancies with 69,000 made redundant over the last three months, up 25,000 (56.5 per cent) on the quarter and 20,000 (41.5 per cent) on the year.

 

The coalition can still point to the fact that there are now 29.27m people in employment, 251,000 (0.9 per cent) more than year ago, and that the rise in private sector employment has (so far) compensated for the fall in public sector employment. There are 520,000 more private sector workers than a year ago, compared with 143,000 fewer public sector workers. But with the biggest cuts yet to come and growth significantly lower than expected, things could be about to get very grim indeed.

George Eaton is political editor of the New Statesman.

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Can Philip Hammond save the Conservatives from public anger at their DUP deal?

The Chancellor has the wriggle room to get close to the DUP's spending increase – but emotion matters more than facts in politics.

The magic money tree exists, and it is growing in Northern Ireland. That’s the attack line that Labour will throw at Theresa May in the wake of her £1bn deal with the DUP to keep her party in office.

It’s worth noting that while £1bn is a big deal in terms of Northern Ireland’s budget – just a touch under £10bn in 2016/17 – as far as the total expenditure of the British government goes, it’s peanuts.

The British government spent £778bn last year – we’re talking about spending an amount of money in Northern Ireland over the course of two years that the NHS loses in pen theft over the course of one in England. To match the increase in relative terms, you’d be looking at a £35bn increase in spending.

But, of course, political arguments are about gut instinct rather than actual numbers. The perception that the streets of Antrim are being paved by gold while the public realm in England, Scotland and Wales falls into disrepair is a real danger to the Conservatives.

But the good news for them is that last year Philip Hammond tweaked his targets to give himself greater headroom in case of a Brexit shock. Now the Tories have experienced a shock of a different kind – a Corbyn shock. That shock was partly due to the Labour leader’s good campaign and May’s bad campaign, but it was also powered by anger at cuts to schools and anger among NHS workers at Jeremy Hunt’s stewardship of the NHS. Conservative MPs have already made it clear to May that the party must not go to the country again while defending cuts to school spending.

Hammond can get to slightly under that £35bn and still stick to his targets. That will mean that the DUP still get to rave about their higher-than-average increase, while avoiding another election in which cuts to schools are front-and-centre. But whether that deprives Labour of their “cuts for you, but not for them” attack line is another question entirely. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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