UK Unemployment Rate 'Drops To 4.9%'

25-Jul-2016

Railway station concourse

The unemployment rate in the UK has dropped to 4.9 per cent, with the total number of people not in work from March to May falling to 1.65 million, the latest figures from the Office for National Statistics show.

The rate of unemployment in the country is now at its lowest since July 2005, although some expert analysts have said that the outcome of the EU referendum on June 24th means that this positive trend will most likely not continue for that much longer, the BBC reports.

The Bank of England stated that the majority of businesses asked said they do not expect a near-term impact from the vote on hiring or investment plans, but approximately one-third did admit that there could well be some negative impact on their plans over the coming year.

UK economist at Capital Economics Paul Hollingsworth told the news source: "The vote to leave the EU will almost certainly now cause some firms to put hiring decisions on hold or cut back headcounts altogether. Indeed, we expect the unemployment rate to begin to drift up over the coming quarters. The upshot is that these may be the best set of labour market figures for a while."

The uncertainty surrounding Brexit and what's going to happen over the next couple of years will undoubtedly be at the forefront of many business owners' minds, as well as their employees'. Many will be concerned about their job security and whether fresh redundancies will be made, but it's very much a wait-and-see approach that companies have to take at the moment.

If you do have people leaving the workforce, it's important to send out exit surveys to find out why they're leaving and what they're going to do next. This will help you identify any emerging trends or problems with how you run your company, as perceived by your staff members, so that any necessary changes can be made.