Government Support For New Businesses Leads To Record Employment Level

Some 30.8 Million People In The UK Are Now In Employment

14.11.2014

Fergal Dowling, Partner | +44 (0)121 214 5476

A record 30.8 million people in the UK are now in work - something that may partly be due to the government's increased support to the creation of new businesses.

The latest Labour Market figures from the Office for National Statistics - which cover the three months leading up to September 2014 - show that an additional 694,000 people have entered into employment over the past year, with 112,000 individuals finding work in the last three months alone.

This means the country's employment level now stands at 73 per cent, indicating that it has now reached its pre-recession state once again.

Looking at the ONS figures in more detail, it can be seen that there are now two million more people in private sector roles than there were in 2010, meaning the government's support of small businesses and entrepreneurship appears to be having a positive effect on both the jobs market and the economy.

Employment minister Esther McVey commented: "With the vast majority of the rise in employment over the last year being full time, it's clear that thanks to the government's long-term economic plan, we are helping businesses to create the jobs that people need.

"As the economy continues to grow, more and more people are having their lives transformed by moving into work."

The ONS data also shows that wages for UK workers have begun to increase, with a rise of 1.3 per cent for the year ending in September 2014 (excluding bonuses), while for private sector roles, pay has risen by 1.6 per cent.

What's more, a record number of women are now in work, with three-quarters of the increase in female employment since 2010 relating to managerial and professional roles.

In addition, youth unemployment levels also fell during the quarter, with the number of 18 to 24-year-olds claiming Jobseeker's Allowance now at its lowest level since the 1970s, while the figure for those out of work has decreased by 163,000 over the past four years.

Expert Opinion
It is very welcome to see employment levels increase and it is likely that small businesses will have had an important part to play in this regard, with the improving economy allowing them to plan for expansion and to develop the skills available within their workforce.

"Recruitment is a vital part of running a business and it is vital that SMEs ensure they have a robust system and process in place when taking on new staff. We would urge small businesses to talk to employment law experts to ensure they have the relevant policies implemented to ensure that the process of hiring and maintaining the engagement of staff is possible."
Fergal Dowling, Partner