The weakening labour market

The BBC reports:

Across the UK the number of people employed increased by 178,000 in the three months to August, the ONS said.

Sounds good. A more detailed look at the data, however, suggests a bleaker picture.
First, of those 178,000, 43,000 are the newly self-employed. A sector that accounts for only 10% of employment accounted for 24.2% of employment growth. Now, if this is an increase in entrepreneurial spirit, fantastic. I suspect, however, that it is partly people re-labeling themselves as freelancers or consultants, or setting up tiny businesses that don’t pay as well as full-time jobs. Such people are frustrated  employees.
Secondly, a further 123,000 net new jobs are part-time. More than half of these new workers - 65,000 - are working part-time because they can’t find a full-time job.
Thirdly, the number of full-time employees fell by 17,000 between March-May and June-August.
None of this is a sign of a strong labour market - quite the opposite.
Worse still, things seem to have gotten worse just recently. If we compare the May-July data to the June-August data - which is not in today’s press release but readily available in the time series archive - the number of full-time employees fell by 52,000, the second biggest monthly fall since June 2009.
This is consistent with the rise in employment associated with Q2’s boomlet in GDP now going into reverse - a possibility corroborated by the rise in claimant count unemployment in the last two months and by the 30,000 fall in the number of vacancies between Q2 and Q3. It is also, however, consistent with the possibility that  actual employment never really increased that much and that the figures were flattered by a bit of luck in the sampling process.
Given all these signs of weakness, it shouldn’t be surprising that the wider measure of unemployment - which adds to the formal unemployed part-timers who’d like a full-time job and the economically inactive who want to work - rose in June-August. This now stands at 5.99 million, or 15% of the 16-64 year-old population.
Another thing. 44,000 of the 178,000 rise in employment was in the over-65 age group, even though these account for only 2.8% of all employment. This suggests there are growing numbers of people wanting to top up their pensions with work - which is hardly a sign of a prospering economy.

Comments

[andrew]

This suggests there are growing numbers of people wanting to top up their pensions with work - which is hardly a sign of a prospering economy.

Rubbish.

It is an indication that a growing number of over 65s feel their pension is too small and they think they will be able to get a job.

For better or worse I think it is a sign that the days when we worked for one company most of our lives and we could trust them to provide for us in our old age is gone, but not enough time has gone by to get that message embedded in our culture.

[Keith]

Why worry about unempliyment Chris?

If your Gideon osbourne more unemployment means cheaper servants and more black prostitutes to service his male member so its all good.

It is very important to remember that our priority is to punish the Disabled, who made the lifestyle choice of having a disability; and the kids who chose the wrong parents
by cutting their benefits!!

Get on board Chris or people will think your some left wing weido who believes in hunane ideas!

[Keith]

By the way Andrew No!

Its time to get the idea, "embedded in our culture" that the state should give all a decent pension when they are old rather than force people to drag their old bodies into work to avoid starvation.

[Jean]

The global recession is still here, we just forgot about it because of other things running around the world like celebs getting rehab. People forget, get dumb and numb.