Recently released data from the Office for National Statistics (ONS) suggests the labour market is continuing its strong recovery from the economic shock caused by the pandemic.
UK job vacancies have risen to record levels, with 953,000 in the three months to July. Unemployment continues to decrease and has reached 4.8%, a 0.2% decrease compared to the previous quarter, showing confidence in the labour market is beginning to bounce back.
The biggest test is likely yet to come as the furlough scheme closes in September, it is at that time where the stability of the labour market will be tested and we will see how much businesses have managed to recover. The ONS have suggested that as government support winds down unemployment will see a slight rise.
To avoid a spike in unemployment levels, government could consider providing more retraining opportunities for those unemployed and a possible extension to the Kickstart scheme which has helped young people, who have been amongst the most affected by the pandemic, get back into work and upskill. Businesses have also been faced with a lack of skilled employees when advertising for vacancies, so providing a retraining scheme will help both the unemployed and those businesses who are facing skills shortages.
The next month will be one of the biggest tests for businesses to navigate, as the stabilisers are taken off and they are left to survive without the furlough scheme, which at its peak almost 9 million employees were signed up for. As ever the Chamber will be here to support businesses in providing the latest guidance and advice throughout the coming months.