Employment hits record end-of-year high

Friday 29 April 2016

The number of people in work has hit a record high, with 1,550 new private sector jobs being created in 2015 at the same time that 360 jobs public sector jobs were cut.

Within the finance industry, the number of people employed in the banking sector continued to fall, but growth in the trust and legal sectors means that finance is at the highest level recorded since June 2009.

The stats released this morning show that there are 7,440 people working than there were ten years ago.

The figures in the six-monthly Labour Market Report by the States’ Statistics Unit show that the finance sector remains by far the biggest employer in the Island.

They show the top five employers are:

-       Financial and legal services – 13,010 (up 420 in 2015).

-       Wholesale and retail trades – 7,800 (down 210 in 2015).

-       Education, health and other services – 7,250 (up 560 in 2015).

-       Construction and quarrying – 5,300 (up 320 in 2015).

-       Hotels, restaurants and bars – (up 170 in 2015).

The figures for the finance sector suggest that 2016 will see the trust and company administration sector will overtake the banking sector as the biggest employer – banks currently employ 4,680 people compared to 4,540 in trust and company administration.

Just three years ago, banking employed 1,360 more workers than the trust sector.

The figures have been welcomed by ministers, with Assistant Economic Development, Tourism, Sport and Culture Minister Murray Norton describing them as very encouraging.

He said: “If you add them in with the real earnings growth that we have seen in 2015 already, it's one if the really good indicators that we are on course for good economic growth.

"We have reduced public sector employees by 4%, which is good, and which is what was required of us both politically and in the wider spectrum.

"There has been a steady decline in the numbers of bankers, which have been streamlining and reducing in back office functions, and that's mostly to do with technology.

"We have seen it happening year after year and that continues and will continue - but against that backdrop, the diversification within finance away from banking has been a real focus.

"These figures are as good as expected, if not better at this stage."

Earlier this week it was revealed that forecasts for pay growth, company profits and economic performance have all been downgraded just six months after they were made.

The panel of independent economists who advise the States on economic policy have reduced the forecasts, saying that salaries and profits will rise at a slower rate than they were predicting in September.

The update by the Fiscal Policy Panel was made last month, and also include an updated forecast of a rise in interest rates. According to the panel – who have all held senior economics positions in the UK civil service or at the Bank of England – they said that the risks to Jersey’s economy looked greater.

In the States Treasury Minister Alan Maclean confirmed that the forecasts had been downgraded, but said that the panel had emphasised the need for flexibility to cope with changes.

He said: “The have revised the average earning growth down in 2016 to 2.8% and down in 2017 to 3.6%.

“They did highlight the risks in the economic outlook have increased further. If earnings growth turned out lower than expected, them its likely to lead to lower growth in tax receipts.”