The latest figures released by the Office for National statistics suggest the jobs market has been broadly stable in recent months, with signs of recovery.
The number of payroll employees has increased for the fifth consecutive month, but still remains 772,000 below pre-pandemic levels. Since February 2020, the largest fall in payrolled employment has been in the hospitality sector, among those aged under 25 years, and those living in London.
The latest estimates for January to March 2021 show signs of recovery, with quarterly increase in employment rate.
Young people those aged 16 to 24 years have been particularly affected by the pandemic. Over the last quarter there was a decrease in the employment and unemployment rates for young people, particularly amongst 16- to 17-year-olds. This suggests that more young people are staying in education and not looking for work, which is supported by the record economic inactivity rate of young people in full-time education.
Commenting on ONS Labour Market statistics for May 2021, Policy executive, Arjun Heir, said:
‘‘Data released by on the ONS on the labour market provides confidence that the employment market has remained resilient throughout the Covid-19 pandemic. However, sectors such as hospitality and retail remain significantly affected by the pandemic with the number of payroll employees still down by 772,000 below pre-pandemic level. We hope as we progress throughout the government roadmap, the UK economy begins to recover and gradually stimulate the local, regional, and national economy to help reduce unemployment across the country.
Commenting on ONS Labour Market statistics for May 2021 published today, BCC Head of Economics, Suren Thiru, said:
“The decline in the unemployment rate and the rise in payroll employment is further confirmation that the UK jobs market is now more resilient to the ongoing restrictions.
“Continued government support and the easing of restrictions as the UK moved to step two of the government’s roadmap helped drive higher payroll employment in April.
“The rise in the number of job vacancies points to an encouraging upturn in demand for labour amid the gradual reopening of the economy and the strong vaccine rollout.
“UK unemployment remains on track to peak at a much lower level than in recent recessions. However, the squeeze on business cash flow from any marked delay to the planned full reopening of the economy may trigger renewed job losses, particularly when furlough becomes less generous over the summer.
“The economic scarring caused by coronavirus may drive a two-track jobs market recovery, with strong demand for labour in sectors where activity rebounds quickly, but with young people now entering the workforce and those whose lost their job during the pandemic at particular risk of longer-term unemployment.”
“More interventions are likely to be needed to support the UK jobs market, including extending the kickstart scheme help protect young people from the risk of displacement from labour market.”