Better employment figures continue to go against economic trends

The national unemployment figures for December 2012 (published January 23) again brought better news with 12,100 fewer people claiming Job Seekers’ Allowance. And the wider estimate – including those unemployed but not claiming the allowance  – showed a drop of 37,000 in the September-November quarter bringing the rate down to 7.7 per cent.

These figures also showed the trend towards part-time working slowing with a significant increase in full-time jobs. During the quarter the number of people working part-time because they could not find full-time jobs fell by 23,000, but at 1,390,000 was still 73,000 higher than for the same period last year.

The overall figures for the Devizes constituency barely changed between November and December 2012 with the claimant rate staying at its traditionally low figure of 1.7 per cent.  There was however a significant drop in unemployment among those aged twenty-four and under.

Figures for job centre vacancies in each constituency which have given some indication of future employment prospects, are no longer being published. However, some impact in the constituency is to be expected in future months from the 800 full-time jobs being cut at Honda’s Swindon plant.

On top of those 800 jobs, 300 contract workers are expected to be released by Honda in February. And this week the first announcement of job losses among Honda’s local suppliers saw 370 jobs going at a major Swindon logistics company.

One estimate is that including the full range of Honda’s suppliers, the job losses in the area could eventually total 3,000.

January’s figures brought little comfort for high streets.  Besides the major recent chain- store casualties, wages are still growing well below the rate of inflation.

Total pay (including bonuses) increased by just 1.5 per cent over the year to November, and  regular pay rose by 1.4 per cent.  With consumer prices increasing at 2.7 per cent, the cut in real earnings goes on – meaning there is less money for people to spend on the high streets.