We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

Unemployment falls thanks to Olympics


Most of the job rises appear to be in and around London suggesting the Olympics helped unemployment, the ONS says

Article comments

Unemployment fell to the lowest level in almost a year in the quarter to June thanks in part to the Olympics, according to official data on Wednesday, providing some relief to the embattled government.

The Office for National Statistics said that the decline in unemployment was largely due to falling jobless numbers in London, where also almost half of the new jobs were created, adding to signs that some of the labour market improvement was due to the Olympics.

The fall in unemployment and the rise in employment will come as a relief for the government, under intense pressure to revive the economy, which is stuck in recession as cuts to public spending, the euro zone debt crisis and a lack of bank lending hold back growth.

The number of people claiming jobless benefit fell by 5,900 in July, the ONS said. Analysts had forecast an increase of 6,000 on the month.

The number of people without a job on the wider ILO measure fell by 46,000 in the three months to June to 2.564 million.

The jobless rate dipped to 8.0 percent, the lowest level since the three months to July 2011 and compared with forecasts for an unchanged reading of 8.1 percent.

Employment rose by 201,000 in the three months through June to 29.476 million, the biggest quarterly rise since May to July 2010 and the highest level since May to July 2008.

The economy has been stuck in recession since late 2011, and while a modest rebound over the summer is likely due to one-off factors and a boost from the London 2012 Olympics, a more sustained recovery looks elusive.

The Bank of England sees no growth for the full year, while other economists expect the economy to shrink.

The rise in employment in a declining economy has been one of the biggest riddles for economists, and many expect unemployment to rise in due course.

Business surveys have shown relatively stable staffing plans, though a recent poll showed that the number of people placed in permanent jobs fell for the second straight month in July.

The government has been hoping that private companies create enough jobs to make up for the some 700,000 jobs expected to be lost due to its plan of government spending cuts aimed at erasing the country's large budget deficit.

The fall in unemployment may help to support consumption as many Britons have been holding back spending as fears about job security weighed on confidence.

However, the ONS' wage data showed that inflation of 2.6 percent in July still outpaced earnings increases, denting consumers' spending power.

Share:

Recommended Articles

Comments

Unemployment falls thanks to Olympics
People Management

Is the CFO still the sole sacrifical lamb when a company struggles?

Is the CFO still the sole sacrifical lamb when a company struggles?

Tesco's announcement today that boss Philip Clarke is to leave proves that's no longer the casemore ..


Tesco’s Philip Clarke exits after another profit warning

The UK’s largest retailer appoints outsider Dave Lewis, president of personal care at Unilevermore ..

Unemployment falls to near six-year low of 2.12 million

There were 30.64 million people in work in 3 months to May - a leap of 254,000 compared to previous quartermore ..

HP staff in favour of industrial action on jobs

Failure to cooperate with ‘knowledge transfer' may affect DWP and MoJ contractsmore ..

Ten tactics to unleash the potential of Generation Y in finance

Most CFOs are Baby Boomers or Generation X-ers – the difference in mindset is hugemore ..

What's the role of the finance chief in a takeover bid?

With Pfizer's possible takeover of Astrazeneca in the spotlight we take a look at how pivotal the CFO is in such a dealmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *