{"id":16411,"date":"2018-02-17T00:00:00","date_gmt":"2018-02-17T06:00:00","guid":{"rendered":"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/"},"modified":"2018-02-17T00:00:00","modified_gmt":"2018-02-17T06:00:00","slug":"uks-unemployment-lowest-since-1975","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/","title":{"rendered":"Why the UK\u2019s Unemployment is the Lowest Since 1975"},"content":{"rendered":"<p> <!-- .post-meta --><\/p>\n<p><span style=\"font-weight: 400\">The second quarter of 2017 saw the UK <\/span><a href=\"https:\/\/www.cnbc.com\/2017\/08\/16\/uk-unemployment-falls-again-to-lowest-since-1975-wage-growth-still-lacklustre.html\"><span style=\"font-weight: 400\">unemployment rate drop to 4.4%<\/span><\/a><span style=\"font-weight: 400\">, the lowest it has been since 1975. Additionally, the Office for National Statistics stated that employees&#x2019; total earnings (including bonuses) rose by 2.1% in a three-month period until June. Despite what financial analysts forecasted with last year&#x2019;s Brexit, <\/span><a href=\"http:\/\/www.clarizen.com\/uk-employment-situation-now-future\/\"><span style=\"font-weight: 400\">employment in the UK is doing quite well<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2017\/11\/stakeholder.jpg\" alt height=\"400\"><\/p>\n<p><b>The Weakness of Sterling<\/b><\/p>\n<p><span style=\"font-weight: 400\">So, what is really causing this incentive for employment in the UK? It can all generally be traced back to the weakness in the price of the pound sterling. Since Brexit last year, the slump has spurred business and boosted multinational companies listed on the UK&#x2019;s FTSE 100 to benefit from earnings in currencies stronger than the pound. This, in turn, has improved productivity and thus required the hiring of more employees. <\/span><\/p>\n<p><b>Britain&#x2019;s Benchmark Index<\/b><\/p>\n<p><span style=\"font-weight: 400\">The Financial Times Stock Exchange 100 index (<\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/FTSE_100_Index\"><span style=\"font-weight: 400\">FTSE 100<\/span><\/a><span style=\"font-weight: 400\">) is a list of the top one hundred companies in the London Stock Exchange with the highest market capitalization. The FTSE 100 is calculated by using the total market capitalization garnered from the individual share prices of the companies. As share prices change, so do index values. Recently, the FTSE enjoyed its longest run of <\/span><a href=\"http:\/\/www.telegraph.co.uk\/business\/2017\/01\/05\/ftse-100-sets-new-intraday-record-high-investors-eye-uk-services\/\"><span style=\"font-weight: 400\">record closes in the past 20 years<\/span><\/a><span style=\"font-weight: 400\"> (since 1997). In 2016 the FTSE 100 made gains of 14.4pc making it the best year since 2009. The idea that this index is doing better than it has in decades is a strong indication of why UK unemployment is down considerably. <\/span><\/p>\n<p><b>Slow Wage Growth<\/b><\/p>\n<p><span style=\"font-weight: 400\">The bad news is that wage growth is still slow to catch up. Unlike previous economic cycles were job rates were low, competition is currently high and there is no scarcity in the job market. Thus, there is no motivation to increase wages. Although inflation has eased since May (when it hit a record 2.9%) wages have been slow to improve. The plus side is that now <\/span><a href=\"https:\/\/www.theguardian.com\/business\/2017\/may\/17\/unemployment-low-wage-growth-gig-economy\"><span style=\"font-weight: 400\">15% of the UK&#x2019;s labor market<\/span><\/a><span style=\"font-weight: 400\"> is self-employed so people have more <\/span><a href=\"https:\/\/www.clarizen.com\/teams\/\"><span style=\"font-weight: 400\">control over the type of work they are performing<\/span><\/a><span style=\"font-weight: 400\">. The nature of work has changed and now it is up to the government to respond accordingly with laws to protect freelance employees.<\/span><\/p>\n<div id=\"content-cta\">\n<div id=\"content-cta-text\">Increase your business agility with Planview AdaptiveWork&#x2019;s project management software<\/div>\n<div id=\"content-cta-button\"><a href=\"https:\/\/www.clarizen.com\/resource\/product-tour\/\">Take a Product Tour<\/a><\/div>\n<\/div>\n<p><b>Outsourcing and Migration<\/b><\/p>\n<p><span style=\"font-weight: 400\">Another factor that can affect the unemployment rate in the UK is the ability of employers to hire cheap labor from overseas. Despite last summer&#x2019;s referendum, migration has not ceased in the UK. &#xA0;In the first quarter of 2016, non-UK nationals from the EU working in the UK rose by 171,000 to 2.32 million. This trend has seen the number of employees from the EU double since 2009, which can also account for the rise in employment. There are simply more people and thus more available skilled labor to employ. <\/span><\/p>\n<p><b>Open Market<\/b><\/p>\n<p><span style=\"font-weight: 400\">The job market is currently flourishing with <\/span><a href=\"http:\/\/www.telegraph.co.uk\/business\/2017\/05\/17\/uk-unemployment-lowest-level-since-1975-prices-rise-faster\/\"><span style=\"font-weight: 400\">777,000 jobs advertised<\/span><\/a><span style=\"font-weight: 400\"> from February to April, indicating the job market will continue to grow as these positions are filled. Currently, there are 31.95 million people employed in Britain, with only 1.54 million out of work (the lowest since 2005). It is expected that as inflation begins to fall back in the upcoming year, pressures from the drop in the pound will start to fade and wages will grow once again. The strong demand for labor will eventually push employers to pay more. The Bank of England predicts that wages will start to rise as <\/span><a href=\"http:\/\/www.telegraph.co.uk\/business\/2017\/05\/17\/uk-unemployment-lowest-level-since-1975-prices-rise-faster\/\"><span style=\"font-weight: 400\">unemployment falls to 4.5% and less<\/span><\/a><span style=\"font-weight: 400\">. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Although it was surmised that the UK would experience a financial crisis from Brexit, so far, the signs point to quite the opposite. The shift in politics has spurred the job market and created a stronger economy. Although wages are currently not matching inflation, it is expected to equalize by next year, while the job market will continue to grow. Eventually, wages will meet the demand needed as a healthy economy is a productive one&#x2026; and Britain is well on its way to becoming a byword for both. <\/span><\/p>\n<p><\/p>\n<div class=\"client-logo\"> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Siemens Energy\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/08\/siemens_energy-200x100.png\" alt=\"Siemens Energy\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"IIROC Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/07\/IIROC_logo-200x100.gif\" alt=\"IIROC Success\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Financial Services Institution\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/04\/FINANCIAL-SERVICES-IMG-200x100.jpg\" alt=\"Financial Services Institution\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"M Squared\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/03\/m-squared-logo-200x100.jpg\" alt=\"M Squared\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Aliancys Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2019\/12\/aoc_aliancys-logo-800x400-200x100.jpg\" alt=\"Aliancys Success\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Bonfiglioli Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2019\/11\/bonfiglioli_logo-800x400-200x100.jpg\" alt=\"Bonfiglioli Success\"><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The second quarter of 2017 saw the UK unemployment rate drop to 4.4%, the lowest it has been since 1975. Additionally, the Office for National Statistics stated that employees&#x2019; total earnings (including bonuses) rose by 2.1% in a three-month period until June. Despite what financial analysts forecasted with last year&#x2019;s Brexit, employment in the UK&#8230;<\/p>\n","protected":false},"author":205,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[477],"tags":[],"class_list":["post-16411","post","type-post","status-publish","format-standard","hentry","category-vision-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why the UK\u2019s Unemployment is the Lowest Since 1975<\/title>\n<meta name=\"description\" content=\"LinkedIn0Share0Tweet0Pin0Email0 The second quarter of 2017 saw the UK unemployment rate drop to 4.4%, the lowest it has been since 1975. Additionally, the Office for National Statistics stated that employees\u2019 total earnings (including bonuses) rose by 2.1% in a three-month period until June. Despite what financial analysts forecasted with last year\u2019s Brexit, employment in the [\u2026]\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why the UK\u2019s Unemployment is the Lowest Since 1975\" \/>\n<meta property=\"og:description\" content=\"LinkedIn0Share0Tweet0Pin0Email0 The second quarter of 2017 saw the UK unemployment rate drop to 4.4%, the lowest it has been since 1975. 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Despite what financial analysts forecasted with last year\u2019s Brexit, employment in the [\u2026]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\" \/>\n<meta property=\"og:site_name\" content=\"Planview Blog\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/pages\/Planview-Inc\/89422974772\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-17T06:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2017\/11\/stakeholder.jpg\" \/>\n<meta name=\"author\" content=\"Team AdaptiveWork\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Planview\" \/>\n<meta name=\"twitter:site\" content=\"@Planview\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Team AdaptiveWork\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\"},\"author\":{\"name\":\"Team AdaptiveWork\",\"@id\":\"https:\/\/blog.planview.com\/#\/schema\/person\/e307731bc782b0042d055366fc035e50\"},\"headline\":\"Why the UK\u2019s Unemployment is the Lowest Since 1975\",\"datePublished\":\"2018-02-17T06:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\"},\"wordCount\":670,\"publisher\":{\"@id\":\"https:\/\/blog.planview.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2017\/11\/stakeholder.jpg\",\"articleSection\":[\"Vision and Trends\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\",\"url\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/\",\"name\":\"Why the UK\u2019s Unemployment is the Lowest Since 1975\",\"isPartOf\":{\"@id\":\"https:\/\/blog.planview.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/blog.planview.com\/uks-unemployment-lowest-since-1975\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2017\/11\/stakeholder.jpg\",\"datePublished\":\"2018-02-17T06:00:00+00:00\",\"description\":\"LinkedIn0Share0Tweet0Pin0Email0 The second quarter of 2017 saw the UK unemployment rate drop to 4.4%, the lowest it has been since 1975. 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