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Bad News for UK Employment Market

The number of people in work across Britain has fallen by 58,000 in the three months to September, and wage growth has slowed - an indication that the country’s labour market is deteriorating. 

Growth has 'cooled noticeably'

The data shows total employment is down by 58,000 to 32,75 million, the biggest drop in employment for four years. The Office of National Statistics’ deputy head of labour market statistics, Matt Huges, explains that while growth has been steadily rising year on year, it has ‘cooled noticeably in recent months.’ Having said this, the unemployment rate is still close to its lowest level since 1975. 

In yet another blow, it appears the number of job vacancies has also fallen for the ninth consecutive month. The number of available vacancies dropped by 14,000 to 800,000 in the last quarter – that’s the biggest decline seen since 2009, according to the ONS. This means that more people are out of work, but the number of available jobs has decreased, making it harder for those hunting for roles to find one. 

Wage rise slow down

What’s more, those who remain in work have seen their wages plateau. While the average wage increased by 3.6% per annum in the July-September quarter, it’s down by 3.8% per year in the previous month. However, wages are still outstripping the rise in inflation which is currently at 1.9%. 

UK economist at Capital Economics, Thomas Pugh, explains "this is further evidence that the underlying weakness in economic growth is restraining labour market activity.” He goes on to say that Brexit is another likely contributor to the drop and that the uncertainty is “starting to impact firms' hiring decisions. The survey evidence is consistent with a further softening in employment and wage growth going forward too."

So you can focus on growing your business in these potentially difficult times, outsource your payroll to the experienced team at Essential Payroll. We have been providing accurate and timely payroll services to SME+ companies across the UK for a number of years, allowing them to focus once again on expanding and improving their business. To learn more about our bespoke services, please get in touch with our friendly team today by calling 02382 023223.

Client Feedback

“We can focus on providing accountancy services to our clients knowing that payroll is covered”

DE, Accountant

“In 2014 we outsourced our payroll to Essential Payroll and our experience has been excellent. We run a very demanding payroll with over 600 employees in an industry that has a high turnover of staff. Essential Payroll manage this brilliantly. They go above and beyond to meet our deadlines and liaise with us regularly. Essential Payroll offer a friendly, helpful and informative service that we would thoroughly recommend.”

Commercial Cleaning Company, Hampshire (615 employees)

“We have been working with Essential Payroll for years now, and couldn’t be more satisfied with the services they provide. Very efficient, professional and proactive company. We could not recommend them enough.”

Care Home Group, Dorset (500 employees)

“Essential Payroll has been our payroll office for over 4 years. Everyone that I have dealt with at Essential Payroll has been extremely professional and helpful in dealing with our payrolls. They offer immediate assistance and provide answers to questions we may have. They offer great processing service with payroll being calculated accurately, paid on time and all government forms submitted in timely manner.”

Bar/Restaurant Group, Dorset (75 employees)

“Dorset Commercial Cleaning have worked with Essential Payroll since we started the business three years ago. I can honestly say I wouldn’t know how we’d live without them. Their expertise and guidance was fundamental to us setting up an efficient and swift payroll system and their flexibility and helpful attitude over the last three years has allowed us to concentrate on delivering outstanding service to our clients safe in the knowledge that payroll is happening perfectly."

James Lattimer, Dorset Commercial Cleaning

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