Unemployment up, real wages way down

The squeeze is still very much in effect.

The unemployment rate has risen by 0.2 per cent quarter-on-quarter, to 7.9 per cent, leaving 2.56m unemployed people in the country. That's a small increase, against a background of continued slow improvement in unemployment, but it's unfortunate nonetheless.

The uncanny strength of the labour market was the one shining light in the otherwise continuous stretch of bad economic news the chancellor has had to announce. If this is a turnaround – or even if the steadily improving jobs figures have now started to stagnate – he would be fully in the shit. Youth unemployment is also up quarter on quarter, rising 0.6 percentage points to 21.1 per cent. There are now 979,000 unemployed 16 to 24-year-olds.

The good news here (and you can rely on the DWP to highlight it) is that much of the rise in unemployment comes from a drop in the inactivity rate – the number of working-age people not in employment. That's down to 22.2 per cent, the lowest in over 20 years. The reasons behind such a drop are always murky, but they're likely to represent a mixture of people being forced back into work through the government's welfare changes and people making the decision to go back to work due to a strengthening labour market.

But that good news is buried by the growth in pay, which, at 1 per cent year-on-year, is the lowest since records began in 2001. Compared to CPI – holding steady at 2.8 per cent – that means that real wages are getting hammered. They've been steadily declining since Autumn 2009, and are now shrinking faster than they have been in a year. The squeeze is still very much in effect.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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