UK employment hit the highest level in more than four years in August and jobless claims fell by the largest amount in over two years, suggesting an Olympic boost and raising hopes that the job market is improving. The office for National Statistics has stated that in the quarter to July the number of jobless people fell by 7,000 while the number of people claiming jobless benefit fell by 15,000 last month to 1.5m.
Recent surveys have indicated that firms are planning to step up hiring in the months to come despite an uncertain economic outlook. The government is hoping that private companies create enough new jobs to balance the job cuts in the public sector, which are part of the tough austerity programme.
But the so-called "Olympics effect" masked a less rosy picture outside London, with some regions suffering hefty rises in unemployment.
The figures show that outside London, unemployment rose by 23,000 in Yorkshire and Humber in the three months to July and by 16,000 in the West Midlands. Northern Ireland was also badly affected, with 10,000 more jobless in the quarter.
There are also fears that there could be an Olympics hangover now that the temporary boost from London 2012 is over.
Samuel Tombs at Capital Economics said while the headline drop in unemployment was encouraging, the detail of the ONS report showed a "less impressive picture".
He said that other recent employment surveys suggested many of those taken on for the Olympics "will struggle to find work now that the Games have finished".
John Walker, chairman of the Federation of Small Businesses, said that ‘policies targeted at stimulating job creation, such as extending the National Insurance contributions holiday, are needed to give small firms the confidence to create full-time positions and take on staff," he said.
In addition youth unemployment rose by 7,000 to 1.02 million in the three months to July - an "uncomfortable" figure, according to Philip Shaw.
One solution to the unemployment crisis is through the help of micro and small business, charities and the Third Sector. Many small businesses need to look at the field of youth as a resource to utilise and engage with. However this is proving particularly difficult when small businesses and the Third Sector are not fully supported by the government.
News Source- The Telegraph Finance News