The UK employment is said to reach 30 million by 2015, as the number of people working will continue to grow in 2013, defying a weak economic period. The reason for the rise remains difficult to explain, says the latest analysis of Chartered Institute of Personnel and Development (CIPD).
Latest employment figures showed there were 29.6 million people employed in the quarter to October, an increase of almost half a million on a year earlier. The CIPD, however, warned that some firms had employed in excess in an effort to hold onto skilled and talented staff, which could lead to weaker employment growth even if the economy picks up.
Unemployment consistently dropped for most part of 2012 and fell by 82,000 in the three months to October to reach 2.51 million. Over the same period there was a rise of 40,000 people in work, up to 29.6 million, the highest number of people working since records began in 1971.
The CIPD contradicts several other job market reports in recent months that say that there is a growing problem of underemployment – where people want to work full-time but are only able to work part-time. CIPD uses its report to explain what it calls “job enigma” of 2012, which saw job creations despite a weak economy.
Dr John Philpott, director of The Jobs Economist, carries opposing views regarding the UK job market. Dr Philpott said that workers would be expected to longer hours, a continued squeeze on pay and fewer jobs being created.
Dr Philpott believes that there will be limited job creation in 2013 and that unemployment will rise to 2.63 million as the number of people looking for work increases at a faster pace than the number of new jobs being created. However, Dr Philpott does expect youth unemployment to improve, to come down from around one million to 900,000 in 2013.