November’s pensions strike by public sector unions wiped out
988,000 working days, according to official figures – the most time lost
to industrial action in a single month since Margaret Thatcher was in
power.
The Office for National Statistics, which published its
assessment of the impact of the strike on the labour market alongside
the latest unemployment figures, said the last time a strike had such an impact was in 1989.
The
data also shows that pay growth in the public sector, excluding the
bailed-out banks, is running at just 1.4% a year, the slowest rate since
comparable records began in 2001.
Unemployment across the economy
rose by 118,000 in the three months to November, to 2.68 million, the
ONS said, in the latest sign that the UK slowed sharply in the autumn.
The unemployment rate rose to 8.4%, the ONS said, its highest since 1995, and up 0.3% over the quarter.
There
was some evidence that the labour market may be stabilising: the rise
in unemployment was less dramatic than the 128,000 increase in the three
months to October, while the narrower claimant count measure showed a
smaller than expected increase of 1,200 in December to 1.6 million.
However,
the ONS said a total of 1.3 million people are now working part-time
because they are unable to find a full-time role: the highest number
since records began in 1992.
The number of young people out of
work is also continuing to rise, hitting 1.04 million in the three
months to November, up 52,000 on the three months to October.
The
ONS also confirmed that the painful squeeze on households’ income has
continued, with average pay across the economy just 1.9% higher than a
year ago – less than half the rate of inflation.
The government’s
claim that private sector jobs growth will help to compensate for cuts
in the public sector was undermined by news that 67,000 jobs were lost
in the public sector in the three months to September – the latest
period for which the ONS has figures – while the private sector created
just 5,000 posts.
Chris Williamson, the chief economist at
information provider Markit, said weak pay growth would continue to
depress demand in the coming months. “The increase in unemployment, plus
job security worries and low pay growth for those in work, means
consumer spending may remain very subdued this year, despite lower
inflation alleviating the squeeze on real incomes that caused so much
distress to households in 2011.”
Official figures next Wednesday
will reveal whether the economy expanded in the final three months of
2011, with many City economists forecasting a negative number, which
could mark the start of a new recession.
