Sign industry welcomes fall in unemployment
News the nation has seen the largest drop in unemployment in years has been welcomed by sign-makers and industry in general.
Friday, 24 Jan 2014 09:58 GMT
Employment prospects: there has been calls for an increase in wages as unemployment falls
However the fall to 7.1 percent takes the unemployment level close to the point when the Bank of England would consider raising interest rates. The Office for National Statistics (ONS) says the number of people not in a job fell by 167,000 to 2.32 million in the three months to November and represents the biggest drop since 1997. However the number of young people out of work remains high at 920,000 despite the overall drop.
David Catanach of the British Sign and Graphics Association (BSGA) says: “Naturally the BSGA welcomes the fall in unemployment, along with the improvement in business and opportunities. This is all good news following the very difficult period that the industry has had to go through. We hope the economy is finally on course for a period of sustainable growth and that businesses are in a position to take full advantage in the upturn.”
Businesses require stability in order to continue to drive the recovery, and the government now needs to place more emphasis on improving access to finance so that firms have the ability to grow”
Other business groups were also keen to praise the fall, although some added caution to their plaudits for the fall in the jobless total.
David Kern of the British Chambers of Commerce says: “The latest job figures show that the recovery is still moving in the right direction, and suggest that growth in the fourth quarter of 2013 was strong. Unemployment is down, employment is up, inactivity is down, and youth unemployment also fell, even if the jobless rate for this age group remains too high.
“With the unemployment rate now very close to the MPC’s 7 percent threshold, the clamour for an early interest rate increase will get louder. We still believe that there is no sound case for such a move. Mark Carney has been clear that the 7 percent target is only an indicator, and it would be foolish to choke off the recovery at this stage. It is therefore reassuring that the latest MPC minutes suggest that the committee sees no immediate need to increase rates.
“With inflation down to 2 percent and earnings growth at only 0.9 percent, there are no strong domestic inflationary pressures in the economy. Businesses require stability in order to continue to drive the recovery, and the government now needs to place more emphasis on improving access to finance so that firms have the ability to grow.”
With rising employment the Chancellor George Osborne has signalled that rates of pay may need to rise, especially for those on the minimum wage. He said the country could now afford the prospect of a higher minimum wage and would be looking at the possibility this year. The Labour Party and other interested parties have also been calling for a rise in the minimum wage – something that would affect many in the print industry.
Trade union Unite's Len McLusky says: “Unite has repeatedly called for the national minimum wage to be raised by £1.50 an hour from the current £6.31, and we urge the Low Pay Commission to make that recommendation.”
“Britain’s workers need a big pay rise to complement the drop in this month’s unemployment figures. While the fall in the number of jobless is to be welcomed, there is need for some caution. Millions of people are struggling to pay household bills because wages are so low. Any suggestion that interest rates should rise must be resisted, while so many people sit on the verge of financial meltdown.”
