Employment Hits Highest Rate Since 1971

The UK employment rate has hit its highest level since records began in 1971, according to the Office for National Statistics (ONS). Increasing by 103,000 in the three months to December, the employment rate now sits at 73.2%; higher than the pre-crisis peak of 73%.

David Cameron, speaking at the Rolls Royce car factory in Goodwood, said:

"I'm not saying we have solved all our problems in the British economy in the last four and a half years, but we are on our way.

Over the three month period, unemployment fell by 97,000 to 1.86 million and continued to fall through January, to 843,100. Average wages, including bonuses, rose at their fastest pace since the middle of 2013; up by 2.1% on an annual basis.

However, John Philpott, director of The Jobs Economist, said:

"Although the December bonus season pushed growth in total average weekly earnings above 2%, underlying pay pressure as measured by regular average weekly earnings fell slightly.

"This suggests that the jobs rich economic recovery is still failing to boost labour productivity, which does not bode well for long-term improvement in UK living standards, even if very low price inflation is at present helping to raise real incomes."

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