Data from the Office for National Statistics in the U.K. showed that employment between August and October 2016 fell for the first time in more than a year.
The number of employed people dropped to 31.76 million people. This was a lower figure by 6,000 jobs compared to the second quarter of 2015, according to the data. On the other hand, the jobless rate remained the same at 4.8 per cent.
The statistics office said that the recent employment figures indicated a “flattened” growth trend in the past few months since the referendum vote to exit the European Union.
On a month-over-month basis, the number of people out of work increased to 4.9 per cent in October from 4.6 per cent in the previous month. James Knightley, an economist at London-based ING Bank NV, said that a declining rate of job opportunities could signal a further downside risk for the prospects of consumer confidence and spending activity.
However, there are certain ways to address the lack of employment amongst Britons. In London, recruitment agencies like KennedyPearce Consulting Ltd can support small- to large-size companies in selecting qualified candidates for particular roles. These agencies help clients in determining the best talents for various positions, ranging from rank-and-file employees to C-level personnel.
Despite the recent drop in employment numbers, the statistics office recorded solid growth in salaries in the three months to October. Regular pay, excluding bonuses, increased by 2.6 per cent year over year, surpassing the expected rate of 2.5 per cent.
Still, a forecast rise in inflation may offset the gains in wages, as it is expected to surge by 3 per cent by the end of 2017 amid the drop in the British pound’s valuation since the Brexit vote.
This, in turn, would certainly affect consumer spending, which plays a significant role in keeping the British economy afloat.