The UK employment sector is enjoying a strong recovery according to economic news released today.
Data released from the ONS on Thursday revealed that the number of employees on UK company payrolls soared the most since the start of the coronavirus pandemic last month.
Following the first full month after coronavirus restrictions on hospitality firms, leisure venues, and international travel were relaxed, UK company payrolls increased by 356,000 in June from the month before.
Meanwhile, according to the ONS, UK unemployment posted a small decline. The UK’s unemployment rate stands at 4.8%. This is almost 1% higher than pre-pandemic levels, began, but slightly lower than in the previous quarter.
At present, there are 32 million people employed in the UK, a quarterly rise of just 25,000.
Derrick Dunne, Chief Executive of YOU Asset Management, commented: “UK unemployment dipped once again between March and May. While positive, the ONS reported that there are still 206,000 fewer people in work since before the start of the pandemic – a sobering reminder of the challenging times we’re in.
“There are pockets of positivity among the figures, however, with average earnings shooting up by 7.3%. Moreover, the growing number of job vacancies – particularly those in the accommodation and food service sector – should go some way to creating opportunities for those facing job losses when the government withdraws the job support scheme.
“All the same, the jobs market is in for a turbulent few months, and when the peak in unemployment comes – now predicted to hit 5.5% in September – there’s likely to be a hoard of people pulling back on spending, which is not good news for the economy. GDP growth is already slowing, so the big question now is how the government will look to support these individuals and avoid a drag on the gradual uptick we’ve been seeing in recent months.”
UK Job Vacancies Increase
The ONS reported that there were 862,000 job vacancies between April and June, the highest in 15 months. The number of open jobs between April to June 2021 was 77,500 above its pre-pandemic level in the period January 2020 to March 2020.
Matthew Percival, director for people and skills at CBI said: “Vacancies exceeding pre-COVID levels is a further sign of demand returning and employers creating jobs,”
“Yet businesses’ ability to meet this demand, and support the recovery, is being challenged by staff shortages,” he added. “As COVID cases rise, firms are facing the double difficulty of hiring workers and more employees self-isolating.”
