The nation is divided on many issues. Mention Brexit, Trident or immigration in your local pub and you will hear many different opinions on how we should be untangling each of these knotty issues. So, when the government announced figures from the Office for National Statistics showing that the unemployment rate has fallen to 4.5% – its  lowest rate since 1975 – surely that was something everyone could be agreed was a good thing? Apparently not. As usual, things are more complicated than can be captured in a single number.

The Gig Economy

More people are in employment, but many of the jobs that they have taken are low-paying and insecure. The rise of ‘the gig economy’ is a major factor in these improving employment statistics. However, jobs in the gig economy are often on zero-hours contracts with no entitlement to holiday or sick pay.

Actual Hours Worked

Amidst all this trumpeting of the unemployment figures, a crucial part of the Office for National Statistics report has been largely ignored. The total number of hours worked per week has fallen by 1.8 million over the same three-month period as employment has increased by 175,000. On average, across the nation as a whole, fewer paid hours are being split between more people. 

A Drop in Real Pay

Commentators from across the political spectrum have pointed out that whilst rising employment is a good thing, the concomitant drop in ‘real pay’ must be acknowledged. Real pay is the amount a person is paid adjusted for inflation. This makes it possible to make comparisons between people’s wages across time. Much has been made recently of the 1% annual pay rise cap on the wages of public servants. With inflation running at around 2% - the 1% pay rise is actually a pay cut. 

Skilled Workers

Unemployment figures alone will never tell us how many people with master’s degrees are driving Uber to pay the bills or how much the weekly pay packet of those in ‘employment’ will buy them compared with yesteryear. Ultimately, skilled workers deserve jobs with decent pay and fair contractual terms. This is where we come in. At People with Energy, we partner with firms from diverse industries and find them the best candidates for the positions they want to fill.

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