· Current annual pay increases of 0.7% excluding bonuses will rise as competition for skilled labour increases.
· Emphasis needs to focus on those furthest from the labour market to re-engage with the workforce.
Commenting on the labour market data released today by the Office for National Statistics, Christian Spence, Head of Business Intelligence at Greater Manchester Chamber of Commerce, said:
"Today's statistics continue to show that the economic recovery is having a strong and positive effect on the wider labour market. Headline rates of unemployment and claimants of Jobseeker's Allowance are now at levels last seen at the end of 2008 with the under-25’s claimant count the lowest for nearly a decade. The performance of the labour market means employers are likely to find recruitment more difficult as the year progresses and we expect the current annual pay increases of 0.7% excluding bonuses will rise as competition for skilled labour increases.
"Policy makers should redouble their efforts to focus solely on those people who are now furthest from the labour market and allow the wider economic recovery to enable those prepared for work to re-engage with the workforce naturally. We remain at risk of structural unemployment from disadvantaged parts of the population and all efforts should be targeted directly at those individuals to ensure that a large a number of people as possible can benefit fully from the economic recovery our region is experiencing."
· UK claimant count fell 69,630 to 1.02 million (2.5%) in June 2014 compared to May 2014, the lowest since October 2008.
· Greater Manchester claimant count fell 3,910 to 51,870 (3%) in June 2014 compared to May 2014, the lowest since October 2008.
· Greater Manchester youth claimant count fell 1,080 to 11,580 (22.3% of claimants) in June 2014 compared to May 2014, the lowest since December 2004.