Britain is hiring again: Record number of job vacancies as unemployment rate falls AGAIN to lowest level in six years
- Jobless total falls by 58,000 between September and November to 1.91m
- Number of people claiming jobseeker's allowance falls 29,600 to 867,000
- Job vacancies have also reached a new record - up by 19,000 to 700,000
- Average earnings have increased by 1.7% in the year to November
Job openings have soared to their highest level in 14 years on the back of the economic recovery.
More than 700,000 posts are on offer, 127,000 more than a year ago. Unemployment is at its lowest level in six years and stands at around half the level seen in the struggling eurozone.
The figures, from the Office for National Statistics, show that 5.8 per cent of the working population are without a job. In the three months to November, the number of unemployed fell to 1.91million – a million fewer than five years ago.
Job openings have soared to their highest level in 14 years on the back of the economic recovery, with more than 700,000 posts on offer - 127,000 more than this time last year
In the three months to November, the number of unemployed fell to 1.91million – a million fewer than five years ago
At the same time average earnings are rising, up 1.8 per cent over the past 12 months, and outstripping the 0.5 per cent inflation rate.
The figures are a pre-election boost for George Osborne, with the Chancellor saying it showed Britain was ‘pulling ahead’ as other countries floundered.
Economists warned however that the high number of vacancies could signal a skills mismatch, with firms struggling to find the right workers.
The Mail has highlighted that many construction firms have had to hire bricklayers from Portugal and sandwich factories recruit from Hungary.
Rob Wood of Berenberg Bank said: ‘Record vacancies show that firms want to hire, so their businesses must be doing pretty well.Every month there are more opportunities out there for people without a job or looking to change jobs.
'But the fact vacancies keep rising suggests they are not finding it completely straightforward to find the right candidates from within the pool of unemployed.’
Average earnings are rising, up 1.8 per cent over the past 12 months, and outstripping the 0.5 per cent inflation rate
He said many workers had been reluctant to change jobs after the recession but this could be about to change.
More movement between jobs would also boost wages ‘because employers need to see people leaving before they raise pay’.
Howard Archer of IHS Global Insight said: ‘On the face of it, it looks encouraging that more jobs are available for workers.
‘However it is less positive if it reflects a significant mismatch between jobs available and the skills of people looking for jobs. Or a mismatch between the jobs available and the type of jobs people are looking for.’
The number of people claiming Jobseeker’s Allowance is at its lowest level for almost seven years and is now below 900,000, the ONS said.
Long-term unemployment has fallen by 185,000 in a year to 658,000.
David Cameron said: ‘The drop in unemployment is welcome news.
'Behind the statistics are stories of people finding self-respect and purpose in life.’
But there were signs yesterday that the rapid growth in employment is starting to slow. The ONS said the number of people in work rose by 37,000 to 30.8million in the three months to November – the slowest growth since spring 2013.
The fall in the number of unemployed – 58,000 – was also the smallest for a year.
David Cameron welcomed this morning's figures. He said: ‘The drop in unemployment is welcome news. Behind the statistics are stories of people finding self-respect and purpose in life'
Nigel Meager of the Institute for Employment Studies said: ‘The labour market recovery is continuing in the UK, but there are some changes in the speed and shape of the recovery.
'It is too early to ascertain whether the tide has turned and the labour market recovery is stalling, or whether it’s simply moving into a new, more stable, phase.’
Despite good news on unemployment, there was another increase in the number of people classed as ‘economically inactive’ – up by 66,000 to more than nine million.
The total includes people on long-term sick leave, looking after a relative full-time or who have given up looking for work.
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