More job vacancies than unemployed

For the first time since records began, there are more job vacancies than unemployed people in the UK.

The latest report from the Office for National Statistics (ONS) shows that in January-March 2022 there was a decrease in the unemployment rate, while the employment and inactivity rates increased.

The UK employment rate rose by 0.1 percentage points on the quarter to 75.7% but is still below the level recorded before Covid-19.

Meanwhile, the unemployment rate fell by 0.3 percentage points to 3.7%, its lowest for almost 50 years.

Job vacancies in the period rose to a new high of 1.3 million.

This reflects a reduction in the size of the workforce after Brexit, older workers retiring during the pandemic and a rise in long-term sickness, said BBC News.

Despite the shortage of workers, however, wages are failing to keep pace with price rises and this problem is expected to get worse due to rising costs for food, fuel and energy.

Pay, excluding bonuses, rose by 4.2% in January-March 2022 while inflation hit 7% in March and is expected to peak at over 10% later this year.

UK unemployment falls to record low

The percentage of households with no adults in employment has fallen to a record low of 14.5%, according to data released by the Office for National Statistics (ONS).

Almost 3 million households housing over 4 million people had no working adult, the lowest rate since records began in 1996. The official rate of unemployment is also at a record low of 4.5%, well below the figure of 6.5% generally used by economists to indicate full employment.

While these figures may sound positive, to get a full picture the level of inactive workers should also be considered. This includes people such as students, retired people, part-time workers who would prefer to work full-time, carers and those at home due to sickness or disability.

When inactive workers are included in the figures, the level of joblessness reaches 21.5% of the full workforce, according to the ONS. This figure is around four times greater than the official unemployment figure preferred by the government.

Joblessness is also not distributed equally among the nation’s households but concentrated in around one in seven (14.5%) of homes where no-one aged 16 or over is in employment.

When the ONS began compiling its Labour Force Survey in 1996, the proportion of workless households was 21%. Since then, the proportion of households where all inhabitants are working has risen from 52% to 58%. Particular change has been seen among lone parents; two thirds (68%) of these are now in employment, the highest proportion on record.

Work and Pensions Secretary David Gauke told the BBC that “With record levels of employment, more people across the country now have the ability to support themselves and their families. That means more children growing up with a working adult and more children who can see first-hand the benefits of being in employment.”

Labour’s shadow employment minister Margaret Greenwood said: “While any increases in employment are positive, under this government work is no longer a reliable route out of poverty with over half of those living in poverty coming from a working household.”

UK Employment on the Rise: 49,000 New Jobs Created in June

Great Depression -- UnemploymentAsk many Britons what they think of the ‘economic recovery’ and you’ll be hit with a fairly sceptical response. While the country’s economy continues to return to health, many of those left out of work by the recent recession continue to feel as if they’ve been left out of the recovery efforts. The profits we’ve heard about are often fuelled by job cuts, leading many to lose faith in the current recovery.

But the statistics don’t lie – both the economy and unemployment figures are improving throughout the United Kingdom. The Office of National Statistics has released survey data demonstrating a rise in jobs throughout Britain and a subsequent drop in the amount of individuals left out of work. Is it merely a pipe dream from employment agencies, or is there something really happening here?

For the most part, it appears that the increase in employment figures is backed up in reality. A large number of the UK’s biggest companies are expanding their employee base, attempting to return to pre-crisis operating levels within the next two years. An even greater number of small businesses have attempted to increase staff, all with intentions of working through the economic recovery.

However, the decrease in Britain’s unemployment rate hasn’t been uniform across the nation. While regional cities and towns have seen jobs return, largely to pre-recession levels, residents of London are still forced to cope with one of the worst job markets in recent history. While unemployment in the entire country dipped through July, it increased by over three percent throughout London.

Experts have pointed towards the recent layoffs by many city firms for the decrease in employment, claiming that increased profits will eventually resurrect axed positions. For now, it appears that this non-uniform recovery will continue throughout Britain until nationwide firms have healed.