News / Society
Recovery ‘on track’ despite unemployment rise
There was a mixed picture on unemployment with the numbers out of work in Bristol falling but edging up in the South West region.
But business leaders say the recovery is on track and firms are planning to recruit more workers.
Latest figures from the Office for National Statistics (ONS) for the period from May to July show unemployment rose marginally in the region – up by 1,000 or 0.1% on the previous quarter to give a jobless rate of 5%.
However, this is down by 1.2% year-on-year and remains below the national average of 6.2%, despite being the second consecutive quarterly increase.
In Bristol though, there were 7,030 people claiming Job Seekers Allowance (JSA) in August 2014, down from 10,434 on the previous year – a drop of 32.6%.
The ONS figures show the national jobless rate continued to fall and is at its lowest since late 2008, at 6.2%. This is down 0.4% on the quarter and 1.5% on the year.
National youth unemployment was 16.6%, down from 18.5% in the previous three months but still above pre-recession levels.
Phil Smith, managing director of Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, said: “Although the marginal increase in unemployment this quarter is a concern, the labour market in the South West has continued to strengthen in 2014 with unemployment down on the year and below the national average
“This aligns with what businesses told us in our local business survey with increases in both recruitment this quarter and expectations for the next three months. This growth has fuelled business confidence in the region, which has increased by 9% standing at 74%.
“At last the stubborn youth unemployment figures are moving in the right direction but, for this trend to develop into a structural shift, we all – business, government and education – must work harder on aligning our education system with the world of work.”
Bristol West MP Stephen Williams said it was “no accident” the unemployment figures had fallen overall, adding: “The employment growth that we are now witnessing is one of this Government’s key achievements.”
But Labour’s shadow employment minister Stephen Timms said: “Today’s fall in overall unemployment is welcome, but the new figures have shown working people are seeing their pay falling far behind the cost of living.
“Pay excluding bonuses today is the lowest on record. Under this government wages after inflation have already fallen by over £1,600 a year since 2010 and by next year working people will have seen the biggest fall in wages of any Parliament since 1874.”
Picture Shuttershock
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