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Over 3 Million Jobs Created in the UK in a Decade

One of the great success stories of the British economy in recent times has been the creation of many new jobs. Despite pressure on the economy and Brexit worries, it has been reported that the country has created more than 3 million jobs in the last 10 years.

Former Prime Minister David Cameron pointed out in a BBC interview that the UK created more new jobs between the financial crash and 2015 than the rest of the EU countries combined. The jobs market has continued to improve since then.

In the last year, wages growth was up by 3%. Together with a drop in annual inflation rates, this meant that the average British worker had more spending power than a year before.

For example, for July 2019, the rate of inflation was at 2.1%. Meanwhile, weekly earnings growth had reached 4%. This combination of figures resulted in the most impressive increase in real income that we have seen in a decade.

In August, inflation was at 1.7%. This suggests that there will be another boost in terms of real income once the wage figures for August are revealed.

What Does This Mean?

Some analysts see the ongoing jobs and wages situation as being a sign that the UK can cope with a no-deal Brexit. The good news in terms of jobs and wages suggests that employers are feeling confident about the future.

However, a detailed look at the figures suggests that it is public sector spending that is behind the wage increases. While private sector wages have grown, it is a general increase in the public sector that helps to boost the overall outlook. Worries about the global economy remain, leading to a focus on concerns such as international commercial debt collection.

Another factor to take into account is the rise in self-employed and part-time workers. The Office of National Statistics showed in July that there were 4.9 million people working on a self-employed basis in the UK. This was an increase of 125,000 over a year and means that 15% of the workforce now work in this way.

What Kinds of Job Have Been Created?

According to the Institute for Employment Studies, the total number of jobs created in the last 10 years is 3.4 million. Of this amount, 2.5 million are said to be professional or senior positions. Half a million of them are in low skilled roles and 400,000 are classed as either skilled or semi-skilled.

This fits in with the theory that many of the new jobs have been filled by older, more experienced people. By the end of the year, we should see the first indications of whether Brexit has affected the British jobs market in one way or another.