There is a great deal of excitement about the fall in unemployment – 88,000 people in the three months to April – in the press on the back of June’s labour market statistics. This fall was mainly accounted for by a fall in the unemployment of those aged 16-24, a welcome relief to recent rises in youth unemployment.
It’s not all good news however; out of a fall of 79,000 for this age group, 61,000 moved not into employment but into study. An increase in the number of unemployed people becoming students flatters the unemployment figures in the short term.
But these people will look to re-enter the labour market at some point. And coupled with the1.21 million people currently working part time because they could not get a full time job, unemployment is likely to remain fairly anchored as future job creation is soaked up either by students on the look out for jobs once more or by part time workers.