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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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”