UK unemployment fell to 1.6 million
Official figures have been released which show that the UK unemployment rate fell by 52,000 to 1.6 million in the three months to November, with the jobless rate at an 11 year low of 4.8%. Although figures must be taken with a pinch of salt, as the employment rate remained steady at 74.5%.
If these positive figures continue, companies looking to recruit may find it more of a struggle than before, as potential employees are in a position to be pickier in their choice of employer and rate of pay. Employers will need to offer more to win over the best employees in the ‘war for talent’. Holding onto the best talent will become a harder task, as they regain power in the market. If the unemployment rate continues to fall, higher wages, training and development, culture and working environment will all become vitally important factors for employee retention and recruitment.
Little Change to Earnings
Figures also showed a 2.7% increase in weekly earnings (excluding bonuses) compared to the previous year and that growth in pay (including bonuses) rose 0.2%. However, these figures are too insignificant to make much of an impact on consumer spending and company profits.