With the news that UK unemployment has fallen to 2.16 million, RTA Business asks this week, what the current trend in employment statistics means for the savvy business owner, looking to sell their company in the current economic climate.
At RTA Business We Know Why Unemployment Numbers Matter
Here at RTA Business, we know that when you decide it’s time to part with your business, you want to receive a return on every last bit of hard work that you’ve put into your company. In order to do that, we have learned in our tenure as a business sales facilitator that if you want to receive the highest return possible, you need a favourable economic environment.
That’s why unemployment figures are key. When the unemployment rates fall, it generally means that companies are hiring; expanding to make more money. Expanding companies often look to diversify their business model, and lift their bottom lines, by buying other companies. Essentally, the lower unemployment numbers are, the more likely you are to sell your company.
An Employment Trend
The last several years have not been encouraging when it comes to unemployment numbers. The recession that hit the country due to the global economic crisis, forced companies to lay employees of in droves. At the height of the downturn, unemployment numbers were staggering.
However most financial experts agree that the UK economy is now in full-fledged recovery, partly because unemployment numbers have gradually been decreasing over the last few years. This month, the trend continues, as the Office of National Statistics (ONS) revealed that the number of people out of work fell to 2.16 million, dragging the national unemployment rate down to 6.6%. In contrast, the number of people working saw a record rise of 345,000 to hit 30.5 million; most of these people, according to the ONS, are in full time employment.
More People in Full Time Employment than Ever
David Tinsley at BNP Paribas commented on the nature of the trend to the BBC, highlighting the fact that: "The rise in employment this month is concentrated in full-time employees, not self-employment, which in the past has been used to 'talk down' the strength of the rise."