Commenting on the ONS labour market figures for September 2020, published today, BCC Head of Economics Suren Thiru said:
“Despite the slight rise in the unemployment rate, the furlough scheme continues to limit the pandemic’s full impact on headline job figures.
However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of Coronavirus on the UK labour market is yet to come.
“While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy gradually opened, rather than a meaningful upturn in demand for labour.
“With many firms are still facing waves of cash flow problems, rising costs and an uncertain economic outlook, it is probable that unemployment will escalate sharply as government support winds down.
“To help avoid a damaging cliff edge for jobs more must be done help firms keep staff on through this deeply challenging period. This should include a significant cut in employer National Insurance Contributions and more substantial support for firms placed under local lockdowns.”
Matthew Percival, CBI Director of People and Skills, said:
“The easing of lockdown restrictions and a more flexible Job Retention Scheme in July have led to the beginning of a recovery in vacancies and hours worked. But rising redundancies, rising unemployment and a record fall in the number of young people in work are clear warning signs of what is to come.
“Looking ahead, a successor to the Job Retention Scheme is needed to protect jobs and businesses.”
We agree at Beaumont Select, businesses, particularly those specificlly vulnerable to to the effects of the pandemic will need to be supported by effective government policy and actions that protect jobs and business.
The BCC and CBI were commenting on latest ONS figures releasedby the Office for National Statistics....
See the ONS employment statistics, September 2020 and the main points are shown below...
ONS MAIN POINTS
- Early indicators for August 2020 suggest that the number of employees in the UK on payrolls was down around 695,000 compared with March 2020.
- Figures for May to July 2020 show an increase in the unemployment rate; despite this increase and an increase in the number of redundancies, the employment rate was up and the economic inactivity rate has fallen.
- Over the quarter, there has been a large decrease in the number of young people in employment, while unemployment for young people has increased.
- While redundancies were still historically low, both the quarterly and annual changes are the largest seen since 2009.
- The number of people who are estimated to be temporarily away from work (including furloughed workers) has fallen, but it was still more than 5 million in July 2020, with over 2.5 million of these being away for three months or more. There were also around 250,000 people away from work because of the pandemic and receiving no pay in July 2020.
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