2015-06-17

Rolling coverage of all the day’s political developments as they happen, including George Osborne standing in for David Cameron at PMQs and nominations closing for the Labour deputy leadership

Wage growth highest in real terms since October 2007

11.17am BST

Here are the unemployment figures by region.

Region - total unemployed - change on previous quarter - rate as percentage

11.09am BST

Here is some Twitter reaction to the earnings figures.

From Newsnight’s economics correspondent Duncan Weldon

Employment rate plateauing at record highs but shift within that away from self employment/part-time to regular employment & full-time work.

This shift to more full time employee jobs & away from involuntary part-time & self employment is probably pushing average wages up.

At the moment the UK has decent real wage growth & still seems to be lacking decent productivity growth. That can't last forever.

Private sector driving pay growth - up 3.3%. Public sector 0.3%, or 1.3% excluding publicly-owned banks: http://t.co/dCrHcYiZbJ

The divergence will make public spending cuts more difficult https://t.co/AoKfUyW1FD

10.59am BST

Here is Diane Abbott tweeting about nominating Stella Creasy.

Just nominated Stella Creasy for deputy leader. Important to have the widest possible debate pic.twitter.com/Q9wHry3DJR

10.58am BST

Stella Creasy has got two more nominations, according to the New Statesman’s Stephen Bush. She is now just five MPs short of getting her name on the ballot.

Madeleine Moon is backing Stella Creasy for deputy. She requires a further six names. #labourleadership

My MP @HackneyAbbott is nominating Stella Creasy. She now needs just five names. http://t.co/PgnUYqvgjm

10.57am BST

Here is Frances O’Grady, the TUC general secretary, on the unemployment and earnings figures.

Although today’s improvements are welcome, there is still a long way to go for youth unemployment and underemployment. Real wage growth remains too reliant on low inflation, and even if prices remain exceptionally low we are facing a lost decade on pay growth.

The weaknesses in the labour market that remain behind the headlines should not be swept under the carpet. The government must set clear goals this parliament to bring down youth unemployment and underemployment, and ensure that everyone who needs work has access to a secure and fairly paid job.

10.54am BST

There’s no news yet as to whether Stella Creasy will make the Labour deputy leadership ballot, although, on Twitter, her supporters are speaking out.

This is from Dan Jarvis MP.

There will be a lot of very unhappy #Labour members today if @stellacreasy is not on Dep Ldr ballot #stella4deputy pic.twitter.com/Habyz3rufC

Ah come on Labour MPs. It'll just look silly if @stellacreasy isn't on the ballot paper

To be able to get @jeremycorbyn on the leadership ballot but not @stellacreasy on the dep leadership would say all the wrong things.

10.45am BST

The Resolution Foundation, the low-pay thinktank, has put out a news release saying that ultra-low inflation is responsible for the wage growth we are seeing today and that this may not last long. Here’s an extract.

Strengthening pay and ultra-low inflation mean that real wages are now rising more quickly in real-terms than before the financial crisis. But this rebound may prove short-lived as inflation begins to pick up, the Resolution Foundation said today, in response to the latest ONS labour market figures.

Year-on-year growth in regular pay of 2.7 per cent, combined with inflation of -0.1 per cent, means real earnings growth increased to 2.8 per cent in the three months to April 2015. Since August 2002 this rate of growth has only been exceeded once – in September 2007. Real growth averaged 2.2 per cent over the pre-crisis (2001-2007) period.

10.28am BST

Here is Stephen Timms, Labour’s acting shadow work and pensions secretary (because Rachel Reeves is on maternity leave) on the unemployment figures.

The fall in overall unemployment is welcome, but with more than 740,000 young people unemployed it’s clear the government needs to do far more to give young people the chance to earn a living.

Ministers are failing to ensure young people get the best start in life. Last year the number of under 25-year-olds starting an apprenticeship fell. It’s time for ministers to give young people the world-class apprenticeships and training they need to succeed in life.

10.25am BST

In its news release, the Department for Work and Pensions has highlighted other “good news” in the employment figures, beyond the fall in unemployment and the increase in wage growth. (See 9.53am.) Here are some of the points they highlight.

10.09am BST

Here is James Sproule, chief economist at the Institute of Directors, on the unemployment and wages figures. (See 9.53am.)

With real wages growing and unemployment continuing to fall, today’s figures indicate the UK economy is well along the road of recovery. Falling energy prices and low inflation have eased the pressure on companies and boosted their balance sheets. Many are now able to pass these benefits on to their staff through pay rises and bonuses.

During the downturn, businesses made the difficult decision to preserve jobs and asked that employees forsake pay rises. The strength of the recovery proves this was the right choice. Encouragingly, pay rises are being handed out in a manner which is both sustainable and in line with long-term productivity trends. As the labour market continues to tighten and competition for jobs heats up, real wage growth should remain entrenched for some time to come.

10.01am BST

Nigel Farage, the Ukip leader, told LBC this morning that, although he was “prepared” to lead the No (to staying in the EU) campaign in the referendum, he thought someone from outside politics should take that role.

The role of Ukip, the role of myself will be important. That’s not saying that I have to take the lead. I would be prepared to of course. But I suspect what we will see is somebody coming from completely outside of normal politics, somebody from the world of business or entertainment that hasn’t got any political baggage at all. I think someone like that may well emerge.

9.53am BST

Here is the start of the Press Association story about the unemployment figures.

Wage rises have reached their highest rate for nearly four years, official figures showed today.

Total pay climbed by 2.7% compared with a year earlier in the three months to April, the Office for National Statistics (ONS) said.

9.38am BST

Here are the headline unemployment figures.

9.33am BST

According to Paddy Power, 90% of the money bet on the Labour deputy leadership in the last week and a half has been on Tom Watson. He is the 4/5 favourite, behind Carline Flint on 7/2, Stella Creasy on 4/1, and Angela Eagle and Rushanara Ali on 10/1.

9.09am BST

But, according to the Tory MP Chris Heaton-Harris, there is also a campaign to keep Creasy off the ballot. He tweeted this yesterday.

Am watching political machines at work. Govt 1 on the EU Ref Bill, Labour one trying to stop @stellacreasy getting on the Dep Leader ballot.

9.08am BST

I guess this counts as a celebrity endorsement for Stella Creasy.

MPs still deciding who to vote for as Labour's new deputy - @stellacreasy looks like the future to me. Foe of Wonga, grassroots campaigner.

29 MPs still to nominate, a few hours left. Please let these Labour MPs know you want @stellacreasy on the ballot pic.twitter.com/VeB1llh6T2

8.58am BST

We’re going to see George Osborne take PMQs for the first time today. In a very good Guardian column, Rafael Behr has an elegant explanation.

In the hierarchy of people who matter to David Cameron these days, the entire Labour party sits well below the prime minister of Luxembourg. Since renegotiation of Britain’s EU membership will require unanimous support from 27 other member states, the hostility of a single head of government could sink the whole plan. So instead of taking questions in the House of Commons tomorrow, Cameron is courting Italy’s prime minister Matteo Renzi in the morning, followed by dinner with Xavier Bettel of Luxembourg.

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