18.08.2021

ONS figures suggests job market is recovering

The most recent Office for National Statistics (ONS) data shows the job market is continuing to recover with the number of payroll employees up 182,000 to 28.9 million in July 2021.

However, it remains 201,000 below pre-coronavirus (COVID-19) pandemic levels. With the relaxation of many coronavirus restrictions, total hours worked increased on the quarter, however, it is still below pre-pandemic levels. The redundancy rate decreased on the quarter and has returned to pre-pandemic levels.

There were an estimated 953,000 job vacancies in May to July 2021, a record high, having grown by 290,000 compared with the previous quarter and 168,000 more than its pre-pandemic level (January to March 2020).

Responding to the ONS figures, Jonathan Boys, labour market economist for the CIPD commented:

“These statistics continue the positive trends seen in previous releases. Employment increased and unemployment decreased, but both remain shy of their pre-pandemic levels.

“Since March 2020 employers have used furlough to flex the size of their workforce to meet demand at minimal cost. Now that most people are back at work this strategy is no longer available. Recruitment and importantly retention are picking up the slack. Industries with the biggest surge in vacancies are the ones that used furlough the most, including arts and entertainment, and hospitality.

“Vacancies are a forward-looking indicator due to lead times in recruitment, so we can be confident that employment will continue to increase over the coming months which coincides with the end of furlough. The redundancy rate is back to pre-pandemic levels which is another positive sign that the end of furlough will be relatively painless with minimal job losses.

“Now is the time for employers to think holistically about getting the workforce they need. This means paying careful attention to retention as well as recruitment strategies. Upskilling existing staff and improving people management will help keep current staff invested and engaged in the organisation.”

Jennifer Beckwith, CBI Head of Employment, said:

“With employment up and unemployment down, the labour market is showing further signs of recovery. Yet, with vacancies at a record high, employers are concerned that staff shortages are stalling their ability to grow and support the country’s wider economic recovery.

“Recent changes to self-isolation mean that firms can at last continue to operate more normally, even if short-term absences remain a concern for sectors reliant on younger workers awaiting their second vaccine.

“A wider test and release scheme must be implemented so that self-isolation remains properly targeted at those who risk spreading the virus.

“Longer-term, business must continue to invest in the skills and automation that will underpin future growth. The government can also help by ensuring that the qualifications it funds include those in short supply and removing barriers hampering firms’ ability to recruit overseas workers.”

Posted by: FMJ 0 comment(s)