Yesterday (Tuesday 20 April) the Office for National Statistics released their latest labour market statistics.
The figures suggest that the jobs market has been broadly stable in recent months. The UK unemployment rate was estimated at 4.9%, 0.1 percentage points lower than the previous quarter.
On the other hand, there was a small monthly decrease in the number of payrolled employees in March 2021. 56,000 fewer people were in payrolled employment in March 2021 when compared with February 2021.
Commenting on ONS Labour Market statistics for April 2021, BCC Head of Economics, Suren Thiru, said:
“The latest data confirms that the UK labour market remains subdued. While there was a marginal fall in the unemployment rate, the squeeze on activity from ongoing restrictions helped drive a decline in payroll employment in March.
“Unemployment remains on course to peak towards the end of 2021, once the furlough scheme expires and those who stopped job hunting during the pandemic look to return to the workforce as restrictions ease.
“Although the furlough scheme will limit the peak in job losses, the longer-term structural unemployment caused by Covid-19, particularly among young people, may mean that the road back to pre-pandemic levels lags behind the wider economic recovery.
“Further action will be needed to support the labour market when the furlough scheme ends, including supporting businesses to recruit and retain staff through a temporary cut in employer national insurance contributions.”