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Half a million people could find work next year

28 Jan 14  | Recruitment News
 An analyst has predicted that half a million more people will become employed in 2014, beating the 300,000 estimated by the Office for Budget
and Responsibility earlier this month.
 

According to ft.com, the Charted Institute of Personnel and Development (CIPD) believes this increase in employment will push the unemployment rate to below seven per cent. Currently, it sits at 7.4 per cent.

Chief economist for CIPD, Mark Beatson, said that although the jobs market is looking positive for next year, changes still need to be made.

"Employment growth looks set to continue at an impressive rate over 2014," he explained. "However, the downside is that UK productivity has yet to improve and remains below its pre-recession level.

"A lot of attention is being given to falling real wages and the UK's 'cost of living crisis'...but not enough attention is given to the main reason why this has happened - that productivity has fallen since 2008," reports itv.com.

There are also concerns that once the unemployment rate drops below seven per cent, the base interest rate will go up, which could prove problematic for some people - especially homeowners. However, the Bank of England has also said that interest rates will not necessarily go up just because the level of unemployment has dropped. There will be a review into the base rate once that milestone has been reached.
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