REC - drop in Jobless figures good news

Drop in jobless figures good news, says REC, but confirms two speed market is now in full swing

Released on 15 June 2011

Figures out today have shown another significant fall in the numbers of people out of work. In the three months to April, the total fell 88,000 to 2.43 million, the largest quarterly fall in unemployment for more than ten years, according to the Office for National Statistics.

The most marked fall has been in the number of young people out of work which has dropped 79,000 to 895,000, the lowest rate since April 2009.

Commenting on the figures, Kevin Green, the REC’s Chief Executive, said:

“The reduction in the number of unemployed people is to be welcomed especially among the young. However, this could be the lull before the storm as in the next three months tens of thousands will be leaving school, college or university, having completed their GCSEs, A-levels and degrees.”

The new figures show that those working in the public sector fell by 24,000 to 6.16 million during the quarter while those employed in the private sector increased by 104,000 to 23.08 million during the same quarter.
Kevin Green added:

“While the May Report on Jobs marked a slowing in the rate of growth, recruitment professionals continue to report that hiring activity is still strong in many sectors of the jobs market. Coupled with that, employer confidence is at a 12 month high as is consumer confidence so the jobs market outlook in the next few months is looking more positive than expected considering the UK’s anaemic economic growth"

“The figures also clearly demonstrate that the two speed jobs market we predicted is now in full swing. We remain confident that the private sector can absorb the fall-out from public sector cuts in the medium term.”

Credit - REC Website