New jobs, but what kind and where ?

Man walks part a job centre sign Photo: Danny Lawson/PA Wire

Unemployment is down again, there are more people working, surely what the PM describes as 'encouraging' news.

Well, it needs to be if the Bank of England's target of 750,000 new jobs is to be reached. Few economists doubt that is possible.

But as the employment numbers take on a whole new meaning, it is worth asking what those new jobs will be, and whether they will solve the problems of long term unemployment and youth unemployment that actually both got worse today.

The Governor of the Bank of England Mark Carney has pegged interest rate rises to the unemployment figures Credit: Sean Kilpatrick/The Canadian Press/Press Association Images

The view from experts we've been speaking to is both heartening and concerning.

Despite very big falls in the public sector head count, the private sector is adding jobs at a fair old pace. But as our population is growing it's worth remembering there are more people looking for work too.

But new jobs are likely to be concentrated in London and the South East, rather than reaching areas where long term unemployment has been entrenched.

Most new jobs are likely to be concentrated in London and the South East Credit: PA Wire

John Philpot, an employment expert expects some areas are likely to have least a decade still struggling with it.

And there is some evidence that the labour market is becoming more and more like an hourglass. There are likely to be more highly skilled professional jobs at the top, and more low skilled jobs at the bottom, with a gap in the middle where semi skilled middle income jobs used to be.

And the changes to the labour market where more people are under employed or going it on their own likely to continue too. Both under employment and self employment went up in today's numbers.

Figures for both workers in employment and self employment went up. Credit: PA Wire

Philpot believes the future labour market will be 'two thirds a third' - two thirds of people will have relatively secure, decent employment but a third will be in insecure, poorly paid positions. Even beyond the Bank's target, around 10 million workers will be in a shaky position.

All this of course depends very much on what happens in the wider economy. But just as it good news that more people who need jobs are getting them and unemployment is falling, just creating more positions does not solve all the labour market's problems.