The latest ONS unemployment data is no surprise. The employment rate, which has been buoyant because of the furlough scheme, has started to drop as it ends and employers are forced to make redundancies. Tackling unemployment needs a team effort from the Government and businesses to help people transition to growing areas of the labour market.
The increasing number of vacancies shows jobs are being created, in line with what our Jobs Recovery Tracker has been saying.We’ve counted 1.2 million job ads across the UK right now. The data underpins the importance of getting the winter right — making sure we support demand in the economy. People unable to work should be our priority: this means supporting temporary workers affected by local lockdowns, and supporting businesses in supply chains that stand to lose out.
Cutting employers’ National Insurance contributions could boost hiring and keep people in work. And it’s important we focus on long-term measures — a Brexit deal that guarantees smooth trading with the EU is essential.
Neil Carberry, chief executive of the Recruitment and Employment Confederation
Editor's reply
Dear Neil
You are right that we must support those made redundant with training and deployment into other industries, but it would be wrong to give up on sectors such as restaurants, hotels and entertainment which were booming until Covid-19. These jobs must be supported properly in regions affected by the new lockdowns. Rishi Sunak must support wages not just in tier three areas, where pubs not serving meals are totally closed, but in tier two areas, where they are open but empty due to the ban on multiple households meeting indoors.
A ray of hope came this week from China. Data there yesterday showed the economy picking up strongly. If we can do the same, hospitality and entertainment firms will bounce back eventually — but not if all their staff have been fired and are working elsewhere.
Jim Armitage, Business Editor
