Furthermore, the data, taken from YouGov’s Household Economic Activity Tracker, find that fewer people have seen colleagues laid-off in the past twelve months.
Meanwhile, the YouGov/Cebr Consumer Confidence Index is at its highest level since July 2007, before the financial crisis, and is close to reaching its pre-credit crunch peak.
Stephen Harmston, Head of Syndicated Research at YouGov: “Over the course of the long recession and slow recovery consumer confidence has been somewhat fickle. However, the improvement in the labour market suggests that economic optimism is starting to reach workers as well as consumers; it is clear that this recovery has legs.
“The economy is now safely approaching escape velocity and over the course of the summer consumer confidence will surge past its pre-recession peak, which is good news for the Government ahead of next year’s general election.”
The YouGov/Cebr Consumer Confidence Index is at 113.9, its highest level since July 2007. Over the past month it has increased by +0.9 points and over the last year it has risen by +12.7 points.
Increase in pay, promotions, and bonuses
In May 2012, 40 per cent had received a pay rise, bonus or promotion in the previous 12 months, a level that barely improved in May 2013. However, the figure for this month shows that 45 per cent of people have received a promotion, pay rise or bonus over the past year.
The improvement in the number of people seeing pay increases, promotions and bonuses comes as more people start new jobs. There has been a three percentage point year-on-year improvement in the number of people starting new jobs in the last 12 months, after just a one percentage point increase between May 2012 and May 2013.
The increasing confidence in the labour market as shown by improved rewards and prospects comes as fewer businesses are making people redundant. Whereas 27 per cent and 28 per cent in 2012 and 2013 respectively had seen colleagues laid off over the previous 12 months, the latest figures show that this has declined to 23 per cent in May 2014.