Furlough scheme to end this month
UK employers added a record 241,000 staff in August, bringing the total level of patrolled employees to just above pre-pandemic levels, data revealed on Tuesday.
The figures show a continued improvement in the UK job market as the government plans to bring the furlough scheme to a close at the end of September.
The rate of unemployment fell to 4.6% for the three months to July, according to the ONS. This was in line with economists’ forecasts.
Job vacancies in the UK are at a record high, above 1m for the first time.
Danni Hewson, financial analyst at AJ Bell, comments: “The UK jobs market has been stuck into a blender and whizzed up on high speed. Considering the incredible disruption caused by the double whammy of COVID and Brexit it is rather incredible the situation is looking as healthy as it is.”
“August payrolls delivered employee numbers marginally higher than pre-pandemic, unemployment is just 4.6% despite furlough tapering nowhere near the 10% that had initially been feared and pay has skyrocketed.”
Hewson added: “But some of those positives are masking huge issues. Recovery has been uneven and there are big questions about how all those jigsaw pieces, pieces which no longer fit in a changed puzzle, will be slotted back into place. Pay can’t be the only solution. Training will be crucial and some businesses are already considering candidates without the requisite skills, prepared to offer training because the other option is simply unworkable.”
However, just because people are without jobs doesn’t automatically mean they’ll fall neatly into those holes.
“Places like London and the South East have lagged behind and not everyone can relocate to find work. Those sectors that saw the greatest decreases have enjoyed the biggest monthly increase between July and August,” Hewson said.
“From hotels and restaurants to music venues and shops, the jobs in those sectors are coming back which is having a positive impact on employment levels in under 25’s. If you’ve set your heart on one career path it’s debilitating to find that path has been pulled out from under you and many young people will have chosen to go back to their studies rather than step into a world of work that doesn’t meet their needs.”