UK Unemployment Hits 6 Year Low

In the years following the recession climate, it is perhaps hardly surprising to see that the fortunes of the UK job market are being scrutinised fairly closely, and unemployment statistics are a particularly omnipresent concern for many. Thankfully, the current situation is almost uniformly positive, as unemployment across the length of the country is now down to the lowest figure that has been seen for 6 full years.

As reported by BBC News, the three months prior to May 2014 saw unemployment falling by an astonishing 121,000 people, coming to rest at 2.12 million. The rate of unemployment also receded dramatically, as did the number of people who were attempting to claim jobseeker’s allowance. Apparently, the employment rate in the UK is now a robust 73.1%, which is a heartening fact.

However, despite this undeniably positive situation, there are still obstacles to be overcome. One area of particular concern is the average growth of wages, which are evidently at their lowest level for more than a decade. This unwanted observation casts a shadow over the quality of the jobs that people are turning to in order to find work, and suggests that the fall of unemployment may not be telling the whole story.

It is certainly the case that many UK residents have turned to self-employment as a viable way of earning a living, as the 4.5 million self-employed professionals in the UK at present represent the highest figure since records began. Self-employment has boomed by over 400,000 people in the last year alone, so it has clearly played a substantial role in reducing unemployment figures.

Whilst some look at self-employed positions and equate them with the slow wage growth that has begun to typify the modern employment scene, this really doesn’t have to be the case. For example, at ICS we provide accountancy and payroll services for a variety of contracting professionals, and it’s fair to say that the rates of such freelancers are very generous indeed.

Those who are choosing to make use of our efficient contractor limited company or umbrella company solutions frequently receive rates that are far in front of an equivalent full-time wage in a similar position, so the world of contracting is actually a worthwhile avenue to investigate if the current lack of wage growth is proving to be problematic for you.

The team here at ICS are proven specialists when it comes to helping contractors run an effective and profitable business, so if you’d like to find out any further information then we welcome you to get in touch with us today. Call 0800 195 3750 or email info@icsuk.com and we’ll be happy to assist you.