NIC Holiday off to a slow start

The Regional National Insurance Contributions (NICs) holiday for new businesses has got off to a slow start. It was due to run from September 2010 and the objective was to “move towards a new and more balanced model of economic growth by promoting the formation of new businesses in areas that are most reliant on public sector employment.”  It was estimated that, over three years, “around 400,000 employers will claim the relief with regard to around 800,000 employees” (HMRC impact assessment).

According to figures to 21 November 2011 only 3,345 employers are claiming for 2010-2011 covering 12,411 jobs (10,170 successful employer applications in total) – see Parliamentary Deposited Papers DEP2011-2087.

Maps of private and public sector employment are available here from ONS (national statistics) but the impact of commuting and other factors mean that analysis is not straightforward. For a subregional analysis covering of some of the issues, see this article .

Young people’s education and labour market choices aged 16/17 to 18/19

Young people’s education and labour market choices aged 16/17 to 18/19

  • Almost half of those who are NEET at age 16/17 are still NEET one year later
  • Almost half of those who are NEET at age 17/18 are still NEET one year later
  • 59%  of those young people in a job without training at age 16/17 are still in a job without training one year later (though not necessarily the same one)
  • 71% of those in a job with training at age 16/17 are still in a job with training one year later (not necessarily the same one)

Record manufacturing productivity while unit wage costs fall

Labour Productivity – Q3 2011

  • UK labour productivity increased by 0.2 per cent in the third quarter of 2011 on an output per hour basis, while market sector productivity fell by 0.1 per cent.
  • Productivity of the production industries rose by 1.2 per cent, within which manufacturing productivity rose by 1.4 per cent to a record level.
  • Productivity of the service sector increased by 0.3 per cent in the third quarter.
  • UK unit labour costs increased by 0.5 per cent. Within the manufacturing sector, unit wage costs fell by 0.4 per cent.

National Accounts / Balance of Payments Q3

Quarterly National Accounts Q3 2011

  • UK gross domestic product (GDP) in volume terms increased by 0.6 per cent in the third quarter of 2011
  • Output of the production industries rose by 0.2 per cent, within which manufacturing rose by 0.1 per cent
  • Output of the service industries increased by 0.7 per cent, while output of the construction industries increased by 0.3 per cent
  • Household final consumption expenditure was unchanged in volume terms in the latest quarter
  • Real household disposable income rose by 0.3 per cent in 2011 quarter three

Balance of Payments – 3rd quarter 2011

  • The UK’s current account deficit was £15.2 billion in the third quarter of 2011, the highest on record.
  • The trade deficit widened to £9.9 billion in the third quarter of 2011, up from £7.2 billion the previous quarter.
  • The income surplus was £0.3 billion, the smallest surplus since the fourth quarter of 2000.
  • The financial account recorded net inward investment of £22.0 billion during the third quarter of 2011.
  • The international investment position recorded UK net liabilities of £245.5 billion at the end of the third quarter 2011.

Economic Review – December 2011

  • Economic statistics for October and November suggest a continuation of the subdued economic conditions that have prevailed in recent months. Manufacturing output fell in October, and construction activity remained weak. Labour market indicators were also weak, with a further rise in unemployment in the latest three months, accompanied by continuing modest earnings growth.
  • Bright spots were relatively narrowly confined – for instance the strong growth in exports in October, albeit from a low September base, and the continuing buoyancy of on-line retail sales in November. And consumer price inflation eased for the second month running to an annual rate of 4.8 per cent in November.
  • The latest GDP estimates for the third quarter of 2011 also show patchy growth. Even in the services sector, which provided the mainstay of aggregate economic growth, strength was not broadly based, being confined to a small number of sub-sectors. In terms of expenditure
    components, the main drivers of sustainable growth – household consumption, business investment and overseas trade – were all noticeably weak.

Consumer Trends Q3 2011

  • The volume of expenditure on goods and services (seasonally adjusted) was flat in Q3 2011, following 3 quarters of negative growth.
  • Housing expenditure (which includes fuels and rental charges) showed the largest positive contribution to growth in volume terms.
  • Miscellaneous goods and services (which include financial services and insurance) showed the largest negative contributions to volume growth.
  • In current prices, seasonally adjusted household expenditure increased by 0.8 per cent.
  • The household expenditure implied deflator (a measure of price pressures faced by households) increased by 0.7 per cent

United Kingdom Economic Accounts, Q3 2011

Detailed estimates of national product, income and expenditure, UK sector accounts and UK balance of payments

Citizenship Survey 2009-10

Citizenship Survey 2009-10

Community Spirit Topic Report

  • How people feel about their communities (for example, whether they enjoy living in it and how strongly they feel they belong to it)
  • The extent to which people feel they get on with people from different backgrounds and how and where people mix with each other

Community Action Topic Report

  • Civic engagement that people take part in (civic activism, civic participation, and civic consultation)
  • Subjective empowerment; whether people feel they can influence decisions
  • Volunteering and charitable giving

Race, Religion and Equalities Topic Report

  • Charts key measures such as religious affiliation and practice, views on religious and racial prejudice, harassment due to race or religion, levels of discrimination by public services, and levels of workplace discrimination

 

First Retail Sales growth for 7 months

First Retail Sales growth for 7 months but little cheer in December

  • The CBI has published its latest monthly Distributive Trades Survey, which covers the first two weeks in December.
  • 41% of companies said sales rose on a year ago in Decembe, 32% reported a fall, giving a balance of +9%.
  • This was better than expected and the first year-on-year sales growth since May (+18%).
  • However, volumes of sales were poor for the time of year with a balance of -16% well below the long-run average.