Festive cheer in December jobs figures but cold turkey on New Year menu

December 2007

The final set of Office for National Statistics (ONS) employment and pay figures for 2007 provide plenty of comfort and joy ahead of the festive season. But says John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD), the jobs market will lose its sparkle in 2008:

Dr Philpott continued:

"The latest jobs figures look like a seasonable present to both the Government and the Bank of England. Employment at a record high, job vacancies on the rise, the lowest claimant unemployment for a generation, fewer economically inactive people - and all wrapped up with the added bonus of slower pay growth to ease inflation fears.

"However, without wishing to sound like Scrooge, we shouldn't get overexcited by these figures. Employment in the financial services sector, easily the main engine of jobs growth in 2007, is only just starting to feel the chill wind of the credit crunch. And with public sector employment now clearly on a downward path, sources of job creation will be few and far between in 2008 as the economy slows.

"Indeed, there is already an unwelcome Grinch in the latest jobs figures - signs of an increase in the number of people being made redundant. This may become a more common sight in 2008 with far more people than in recent years being reacquainted with their P45s."

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