Multinationals will help trigger employment growth
We now have just over 1.8 million people in the workplace, compared to a peak of just shy of 2.2 million in the summer of 2009. Whilst the rate of decline in numbers employed has slowed, the figures are pretty depressing; all the more so since the downward trend was seemingly halted in the second quarter of this year, when employment showed a modest increase up to 1.82 million. That now appears to be something of a false dawn for the employment market. Yet, in this same year, recruitment firms are reporting significant growth, so what is going on? How do we interpret the jobs market in 2011 and what does it bode for 2012?
Closer examination of the statistics tells a familiar story. There have been significant drops in traditional, domestically-focused sectors. Agriculture, industry, construction, retail, accommodation and food services saw large drops in employment, all relating to the contraction of the domestic economy. Public administration also saw a significant fall as the Government’s commitment to curtail employment in the public sector has had an effect. Looking for signs of life, we find it where we would expect to; transportation and storage is up, as are information and communication and support services. This is the export sector flexing its employment muscles, but unfortunately, not even the stellar performance of the export sector can make up for the rest of the economy.
