Despite some downbeat headlines, there are glimmers of hope in the latest labour market numbers.
The number of employees rose in three months to December from the overlapping September-November period. This follows a recovery in vacancies, which increased further in the three months to January – see first chart. The vacancies rise accords with surveys of labour demand, such as the Monster index discussed in a prior post, although National Statistics attributes much of the recent pick-up to temporary hiring associated with the 2011 Census.
Also encouraging was a shift from part- to full-time employment, resulting in a rise in average weekly hours. With employee numbers increasing, aggregate hours worked in the latest three months were the highest since November 2008-January 2009.
Claimant-count unemployment edged higher in January but the three-month moving average has fallen since the autumn, suggesting that the recent increase in the Labour Force Survey measure will prove temporary – second chart.
