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job postings in the UK The labor market continued to recover unevenly, climbing to a record high above one million for the first time in August, according to data released by the Office for National Statistics on Tuesday.
As the UK came out of quarantine, the demand for workers increased. Every industry is looking for more workers, with restaurants, bars, hotels and other accommodation and food businesses trying to recruit the most during the summer.
It helped reduce the unemployment rate to 4.6 percent and reduced the number of people out of the workforce.
The statistics office said nearly a quarter of a million people were added to company payrolls in August, returning that part of the labor market (excluding the self-employed) to its pre-pandemic size. However, not every region has fully recovered. Employee numbers were still low in London, southeast England and Scotland. And some of the payroll workers were still receiving wage subsidies from the government’s leave program.
Rising vacancy rate mismatches in the labor market. Even when people return to work, many businesses report having trouble hiring. The personnel they are looking for either moved to different sectors or left the country. And job seekers don’t have the right education or experience. Growth manufacturing sector has been disrupted with the difficulty of filling open positions. And businesses across the UK are experiencing shortages of supplies because very few truck drivers.
Analysts predict that some gains in the labor market will reverse once the leave program ends this month, and employers can no longer count on the government to raise staff wages by up to 80 percent for hours not worked. At the end of July there were 484,000 employers. 1.6 million workers still on leave. Layoffs are expected; a group representing travel industry He said more than two-thirds of businesses with staff on leave expect to cut jobs when the program ends.
“With the leave schedule set to expire in a little over two weeks, we should expect a new rise in unemployment this fall, particularly among leave staff who are unable to return to their previous jobs,” economist Nye Cominetti said in the resolution. The Foundation, a think tank that studies living standards, wrote in a note.
Samuel Tombs, economist at Pantheon Macroeconomics, said the end of the leave program will increase unemployment and underemployment because people are not finding as many jobs as they would like despite the large number of vacancies.
“About 60 percent of off-duty staff are tied to small businesses that employ fewer than 20 people and are unlikely to have the financial strength to re-employ them for all their pre-Covid hours,” he said in a note to clients. Businesses with high vacancies differ from those using the leave program, so people will need to retrain before returning to work, he predicted, with the unemployment rate rising to 5 percent later this year.
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