This is a big year for the UK. It has marked the Queen’s diamond jubilee and is shortly to play host to the summer Olympics. The Olympic Games is a massive undertaking which involves construction of new venues and infrastructure, not to mention a vast influx of tourists. It will create many temporary jobs – such as security guards, for instance. Whilst the debacle over the provision of private security guards for the event under a contract with G4S has been highly embarrassing, undoubtedly, the event has had a significant economic influence (note that I’m being careful not to say if it will be net positive or net negative at this juncture!).
Data just released for the UK shows that the number of unemployed has fallen and the number of people claiming job seeker’s allowance has risen. Er, right. Gone are the days when statistics pertaining to employment were easy to understand; now they are subject to spin and interpretation. The number of unemployed fell by 650 000 in the three months to May. This leaves 8.1% of the workforce or 2.58 million people currently regarded as out of work, but of course there are many other people who are not gainfully employed (as they’d like to be), but are excluded from the figures because they are on training schemes or similar ventures.
The number of people claiming job seeker’s allowance went up by 6100 to 1.6 million in June. Statistics reveal that the number of people who have been out of work for two years or more has also risen and is now at its highest level since 1997 (i.e. well before the global financial crisis) at 441 000. The UK (in work) workforce stands at 29.35 million people.
The decline in unemployment has been patchy with some regions of the UK posting worse figures. Jobs related to the Olympic Games will be just a temporary fillip to the employment situation, so a more realistic picture of the nation’s employment health will emerge in the autumn.