The latest UK unemployment figures from the Office for National Statistics (ONS) show a rise of 44,000, bringing the total close to 2.5 million out of work. The figures, for the three months to the end of December, saw the rate of unemployment rise to 7.9%.
Youth unemployment also rose to its highest ever level, with 965,000 of 16 to 24 year olds now out of work, which is more than one in five at 20.5%. This has led to the REC campaigning to the government to support youth development and employment, such as through apprenticeships.
Tullio Buccellato, a statistician at the ONS said that the drop will have affected the smaller firms more.
“The difference between larger and smaller firms in the service sector may reflect different patterns of activity, with smaller firms concentrated in the provision of specialist services that are especially vulnerable to a fall in discretionary demand – and larger firms in areas where demand is more stable.”
In contrast, the level of unemployment in Scotland has fallen to 216,000, a drop of 13,000 people. Contractors in Scotland have benefited from increased demand in recent months, with temporary job placements higher than the UK. However the overall rate of unemployment is 8.0%, which is fractionally higher than the UK total.
Roger Tweedy of the REC commented on today’s figures, warning that “the full force of cuts in public sector spending is still to be felt.”
However, with the demand for temporary jobs rising and growth in the IT market there are still positive signs about the job market for contractors and freelance workers.
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