Unemployment figures show a growing economy

posted by 4 years ago in News

The number of unemployed people has fallen by 43,000 between February and April meaning that 1.81 million people in the UK are now unemployed. The figures were released by the Office of National Statistics earlier this week. 5.5% of the UK workforce are willing and eager, but unable to work. This is compared with 5.7% in January.

791,800 people in May 2015 have been claiming unemployment benefits. This has decreased since April by 6,500 people. Last year’s figures show it has dropped by 290,000 people. The unemployment figures have been falling for 31 consistent months. Unemployment is now at its highest level since 2008.

Wages increased by 2.7% compared with the same period last year. BNP Paribas say that the average weekly pay is now £462. They also predict that inflation may rise in the latter half of this year.

During 2008 recession hit SME’s hard, costing over 5 million jobs, including the larger businesses cutting employees, the figure totalled at a distressing 13 million lost jobs.

However, SME’s have now recovered from the late recession in the UK. According to the ERC (Enterprise Research Centre) SME’s and start-ups are growing. The rates of growth are looking more familiar to the rates in 2008 before the recession caused them to collapse for six years.

Throughout 2014 new start-ups have produced 4 million jobs, whilst other companies have hired just under nine and half million people. The recession has ended for SMES’s with an impressive 13.4 million new jobs.

Professor Mark Hart, the deputy director of the ERC said, “SME Britain is finally back to where it was before the recession in terms of jobs, growth and start-up activity. For many SMEs, it’s been a long, hard road over the past few years but our research is showing that entrepreneurs and small to medium-sized businesses right across the UK have the wind back in their sails.”

Although, many economists still fear that the economy is still delicate and dependent on consumers and their demands.

Philip Brennan Head of Businesscomparison.com

“Positive signs for the economy, it feels like we are becoming a nation of entrepreneurs. With more SME’s than ever before helping dragged the economy back into growth. The challenge for the government and the bank of England may move towards managing potential inflation increases.”