UK Unemployment Set to Rise in 2017

karlmontgomery • February 27, 2017

According to official figures, UK unemployment fell by 52,000 to 1.6 million from September to November last year. At this point, the employment rate was at a steady record of 74.5% and the UK jobless rate declined to an 11 year low of 4.8%. This year the Bank of England has predicted that the unemployment rate will rise from 4.8% to 5.6% within two years. The unemployment rate is widely speculated to rise this year, as companies become more cautious and hire less. This is due to the unknown outcomes of Brexit as they wait for more clarity on the country’s future. The consequences of Brexit are unpredictable as negotiations could take years to complete. Alongside this, as the broader economy slows, businesses face higher costs and waning demand, directly impacting job growth. Analysts at USB believe that the fall in the value of the Pound has helped exports which in turn has kept the economy going but is unlikely to be sustainable. Rising inflation will mean increases in the cost of food, drink, clothing and electricals. For companies importing parts for their products such as car parts, this is bad news as it will increase their costs.

It is not all doom and gloom.

Whilst some businesses take on a cautious approach other companies such as Facebook and Google have announced plans to create more jobs in Britain. The UK still has one of the lowest unemployment rates in the EU behind only Germany and the Czech Republic. This has been helped enormously by more women in work, reaching a record high of nearly 15 million. Self-employed workers also had the addition of 129,000 to their total of 4.75 million. Whilst post-Brexit uncertainty hangs in the air many companies will continue to invest in new employment and new technology. Whilst job searching may seem daunting in an unpredictable economy new jobs are still being created and positions are becoming available. Here at Recruit Mint, we can help you navigate the job marketplace and find a great opportunity for you. Call us today to find out more!

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