The UK unemployment rate seems to be falling. But what does this mean for the economy and for people on lower paid jobs? Quick Loans Express explores the facts and figures.
In this article about what falling unemployment numbers mean for the economy we shall examine:
The new UK unemployment rates
What Does Falling UK Unemployment Rate Mean For the Economy
The latest UK unemployment rate figures for the UK show a significant drop in the numbers of people out of work. This puts the UK up with the leaders of the eurozone for the lowest numbers of unemployed citizens. Are these low figures great for the economy or are they hiding some ugly truths?
Is the low unemployment rate UK great news for the economy?
The Office of National Statistics has recently published figures that contradict many expert’s opinions on how the economy would be affected by the referendum on the Brexit vote. Their figures show that the number of people employed since the referendum has risen by 379,000. This is in spite of the economic meltdown that was predicted by the former chancellor, George Osborne and Bank of England Governor, Mark Carney.
The number of people unemployed has fallen by 175,000 to 1.46 million since the vote. This is a fall from 4.9% at the time of the referendum to today’s figure of 4.3%, the lowest rate for 42 years. Supporters of Brexit have hailed the figures as a sign of a prospering UK, making the predictions by the former chancellor seem ridiculous. George Osborne had predicted that as many as 820,000 would lose their jobs as the direct result of a recession caused by the Brexit vote. The Bank of England had predicted that the UK unemployment rate would rise to 5.5%.
People are employed, but is this employment ‘good employment’?
At the New Economics Foundation, research carried out indicated that although the number of people who are in employment is rising, the sad fact is that 2 out of every 5 people employed in the UK are in what is considered poor jobs. A bad job is when it doesn’t provide one with a secure, living wage. There is a very disturbing trend in the British job market for falling wages, feelings of job insecurity and false self-employment. More and more people are relying on bad credit payday loans causing a wide debt problem in the UK.
What else do the low unemployment figures disguise?
Over half of the people who classify as self-employed are not earning a decent living wage. The alarming fact is that their numbers are rising. More and more employers are favouring short term employment and zero hour contracts. This means employees can never be sure how much money they will earn from one week to the next. These zero hour contracts can give workers increased flexibility, but they are also filled with insecurity.
- New figures have quashed fears of high unemployment after the Brexit vote.
- Unemployment has fallen to 4.3%
- These are the lowest figures for 42 years.
- George Osborne and Mark Carney had predicted gloom and doom after Brexit.
- Employment is not all good, as 2 out of 5 employed are in bad jobs.
- Bad jobs do not provide secure, decent wages.
- Self-employed people are struggling as well as those on zero hours contracts
Millions are struggling in low paid jobs
The people who hold the country up by performing menial, necessary jobs, are not very well paid for doing so. They often find themselves on short and zero hours contracts that give them no guarantee of how much money they will earn from one week to the next. There are millions of people who work in the care profession, as couriers and cleaners. They provide essential work for the country but are struggling to survive on their meagre salaries.
The low-paid employed with no job security face many challenges
People who are in employment are finding it increasingly difficult to make ends meet. The public sector pay caps, general low wages in the marketplace and high rates of inflation are forcing everyday people into a spiral of debt.
Many rely on using instant payday loans online to get them through the month as their other lines of cheaper credit are all to their maximum limit. On top of the rising costs of living, people are teetering on the edge of a spiral of debt as they struggle to meet their financial responsibilities every month.
The government must take action to provide more secure jobs to lower unemployment rate
People who work to try to help low paid workers, need to put pressure on the government to try and help more people. They need to protect them from employers who exploit them by failing to give them decent wages and a secure job. It is a fact that 2 out of 5 children who live in poverty are from working families.
Unless a person’s wage is enough to afford them a decent standard of living, the government should not consider it a satisfactory kind of employment. It is a good thing that the numbers of employed people in the UK have risen. The government, however, now needs to focus more on the quality of the jobs that people do as opposed to just the figures of the employed. This will avoid people turning to same day loans UK which they can not afford.
So what can we conclude about the falling UK unemployment rate and the economy?
The economy is growing as more people become employed. The figures do not account for all the people who are not job seeking, but still caring for relatives or taking a break from work. The true numbers of the unemployed are in reality much higher.
This means that employers do not feel pressure to increase wages and take better care of their staff. At hard times, people turn to easy and fast loans in the UK to fall back on. This is because they are potentially and easily replaceable with a vast number of people who are still not working. The new low figures are good news. However, on the whole, the quality of the jobs that many people have still leave a lot to be desired.
The article "The UK Unemployment Rate: How Does it Affect the Economy?" was last modified on October 6, 2021