Labour market recovery continues, but real wages still sliding
Authors: Charles Levy
20 February 2013
Commenting on today’s labour market statistics, Charles Levy, senior economist at The Work Foundation, said:
“The ONS have today confirmed that at the end of last year the labour market was continuing to recover strongly. Comparing the three months to December with the previous three months, employment increased by an impressive 154,000, taking the annual tally of new jobs created to 584,000. We should be particularly encouraged by the fact that our economy is now consistently creating full-time work – full-time employee jobs increased by 167,000 over the three month period. And the number of individuals reporting that they are working part-time because they can’t find full-time work is finally starting to fall.
“However, wage growth remains low, tempering what would otherwise be a very positive picture. Annual increases in total pay were only 1.4% in December, well behind inflation. This means that on average, living standards for those in work are still falling.
“The increase in long-term male youth unemployment of 16,000 also signifies just how tough the labour market remains for the 2.5m people who are looking for work.”
Notes to editors
1. CPI was 2.7% in December 2012
2. Charles Levy and Ian Brinkley are available for interviews, briefings and written comment.
3. The Work Foundation aims to be the leading independent, international authority on work and its future, influencing policy and practice for the benefit of society. The Work Foundation is part of Lancaster University – an alliance that enables both organisations to further enhance their impact.
Tom Phillips 0207 976 3554
Anna Kharbanda 020 7976 3656
For urgent out-of-hours enquiries: 07769 684 508