Employment Continues To Fall

13th December 2017.

The number of people in work has fallen for the second month in a row, according to new figures.

The employment boom is losing momentum; employment numbers drop, and wage growth falls behind inflation for the seventh month in a row.

Between August and October, there were 32.08m people in work, 56,000 fewer than in the three months before, according to recent figures published by the Office for National Statistics.

The people in work aged 65 and over has risen, partially due to controversial new pension regulation introduced by the Government.

The level of employment fell by 50,000 for men and by 6,000 for women. The biggest fall in employment was for men aged 18-24 years old.

The ONS also found that average wages were 2.3 per cent higher between August and October than the year before, but real earnings, which take into account the cost of living, fell by 0.4%.

This marks the eighth consecutive month of declining real earnings.

The pressure on household finances is likely to worsen as inflation remains high.

John Hawksworth, chief economist at PwC, said: “Real pay levels continue to be squeezed, and we expect this to persist for at least the first half of 2018, further dampening consumer spending growth.”

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