Huge jump in employment hailed as sign British firms are refusing to ‘panic’ post-Brexit
The number of people in work has leapt by 559,000 in the last year alone
A STAGGERING jump in employment was yesterday hailed as a sign British firms are refusing to “panic” in the wake of the Brexit bombshell vote.
Business chiefs said companies large and small were creating jobs despite fears the Referendum result would bring the economy to its knees.
Official figures revealed employment rose by 174,000 to 31.77 million in the three months to the end of July – the first full month of data post the Referendum vote.
The number of people in work has leapt by 559,000 in the last year alone. There are 2.7 million more people in a job than in 2010, despite public sector employment tumbling by a million since the Tories came to power six years ago.
James Sproule chief economist at the Institute of Directors said: “Despite initial concern after the Referendum, it’s good news employers haven’t panicked and there’s been no immediate spike in unemployment.”
The Federation of Small Business said it was clear companies were taking a “business as usual” approach to hiring.
But it urged the Chancellor to use the Autumn Statement in November to unveil a plan to boost economic growth and sustain the jobs market.
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Yesterday’s figures showed unemployment dipped by 39,000 to 1.63 million – an unemployment rate of just 4.9 per cent- half the rate for the European Union.
Wages are rising at 2.3 per cent per year – down on the 2.5 per cent seen last month.
Pensions Secretary Damian Green said: “It’s great to see another record breaking set of figures out this month with the unemployment rate at a 10-year low and wages growing healthily.
“But there’s more to do and we will continue to work with businesses to help more people take up the wealth of opportunities out there in the economy.”
Experts at Capital Economics warned the Bank of England was still likely to cut interest rates to just 0.1 per cent in November - given fears the jobs market will soften.
Ruth Gregory Capital Economics’ UK economist pointed to a small job in the number of people signing on for jobseekers allowance in July.
She said: “Given the lags involved, it’s not particularly surprising that the figures show the labour market activity has yet to suffer from the apparent post-referendum slowdown in economic growth.
“Nonetheless, the weakening in the employment surveys suggest that the labour market is set to weaken ahead.”