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GDP and the Labour Market - 2012 Q3 - November Labour Market Update

Released: 14 November 2012 Download PDF

GDP and Employment

GDP and Employment
Source: Office for National Statistics

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The UK economy grew by 1 per cent during the third quarter of 2012, following three consecutive quarters of negative growth. The growth of 1 per cent was the highest since the third quarter of 2007, but can partly be attributed to unusual factors in both the second and third quarters.

The Diamond Jubilee reduced the number of working days in the second quarter and poor weather may also have reduced output. In contrast, hosting the London 2012 Olympics and Paralympics in the third quarter of 2012 is expected to have had a positive impact on activity; for instance ticket sales added 0.2 percentage points to GDP growth in the quarter.

Labour market statistics for the third quarter show a fourth consecutive rise in employment, an increase of 513 thousand people on the year. After three quarters of falling productivity, the third quarter saw a larger improvement in output than employment and therefore productivity increased.

However productivity remains considerably lower than its pre-recession peak. Output is still about 3 per cent lower than at the peak, whereas employment is marginally higher. An article analysing the Productivity Puzzle, 'Explanations and Preliminary Analysis', was released by ONS in October.

Composition of the Labour Market, Q2 2008 and Q3 2012

Thousands, per cent

Composition of the Labour Market, Q2 2008 and Q3 2012
Source: Office for National Statistics

Notes:

  1. GST - Government supported training & employment programmes.
  2. Due to rounding, the sum of the categories may not be equal to total employment.

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Although total employment is currently 40,000 higher than its pre-recession peak, there have been significant changes to the composition of employment since 2008. The largest change has been in full-time employees which has fallen from 65 per cent of total employment to 62 per cent, while there have been increases in part-time employees, the self-employed and those on Government supported training & employment programmes. 

Source: Office for National Statistics

Background notes

  1. Sources

    • GDP: chained volume measures, seasonally adjusted, Office for National Statistics (ABMI).

    • Employment level: aged 16 years and over, seasonally adjusted, Labour Force Survey, Office for National Statistics (MGRZ).

    • Employees working full-time: seasonally adjusted, Labour Force Survey, Office for National Statistics (YCBK).

    • Employees working part-time: seasonally adjusted, Labour Force Survey, Office for National Statistics (YCBN).

    • Self-employed people working full-time: seasonally adjusted, Labour Force Survey, Office for National Statistics (YCBQ).

    • Self-employed people working part-time: seasonally adjusted, Labour Force Survey, Office for National Statistics (YCBT).

    • Unpaid family workers: seasonally adjusted, Labour Force Survey, Office for National Statistics (MGRT).

    • Government supported training & employment programmes: seasonally adjusted, Labour Force Survey, Office for National Statistics (MGRW).

  2. Notes

    • GDP data is from the latest release, which is the preliminary estimate of the third quarter of 2012, published on the 25 October 2012.

    • Labour Market data is from the latest "Labour Market Statistical Bulletin" published on the July 2012.

  3. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

Content from the Office for National Statistics.
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