Statistics from the latest report on the labour market show that unemployment stood at 8 percent in the first quarter of 2010, an increase of 0.2 percent. The study was completed by the Office for National Statistics and show that the number of unemployed people has increased by 53,000 to reach 2.51 million, the highest figure since the last quarter of 1994.
This could be a concern for many contractors and agency workers, especially as it is possible that the country will be facing job cuts in the public sector. Just as alarming is the fact that vacancies were down by 6000 over the first quarter of 2010 bringing the figure to 475,000.
However, some good news as according to the report, workers currently earn 1.9 percent more than 2009 in their regular pay without any bonuses, showing that pay levels have increased for the people in work. The study has also shown that 8.17 million people in the United Kingdom of working age were “inactive” during the first quarter of 2010. Almost half of this increase was due to an increase of students who were not in the labour market.
The consumer policy director at uSwitch.com, Ann Robinson said:
“Taking second or third jobs to fund lifestyles is becoming increasingly difficult for a nation that already works the longest hours in Europe. And with the new government planning to cut the deficit, it is highly possible that public sector jobs will be at risk. It really is time for consumers to batten down the hatches.”
For contractors looking to maximise the pay that they do earn, an umbrella company will be able to legitimately increase your take home pay after allowing for deductible expenses. Umbrella companies may also see an increase in clients who want to make the most of employment opportunities where unemployment is increasing.
