UK jobs market ‘remains subdued’

The UK unemployment rate fell to 4.9% in the three months to February, according to the latest official figures. The fall – down from 5% previously – came despite most of the UK being under strict lockdown rules for at least some of the period.

The Office of National Statistics (ONS) said the jobs market was “broadly stable” but “remains subdued”. It added that five million people were employed but still on furlough.

ONS director of economic statistics Darren Morgan said: “The latest figures suggest that the jobs market has been broadly stable in recent months after the major shock of last spring. The number of people on payroll fell slightly in March after a few months of growth.

“There are, though, over 800,000 fewer employees than before the pandemic struck, and with around five million people employed but still on furlough, the labour market remains subdued.

According to the ONS, some 1.67 million people were unemployed between December and February. That is down 50,000 on the previous quarter but still 311,000 higher than a year ago.

People under 25 accounted for more than half of the payroll jobs lost in the year to March, it said – some 436,000 positions.

Head of economics at the British Chambers of Commerce, Suren Thiru, said:  “Unemployment remains on course to peak towards the end of 2021, once the furlough scheme expires and those who stopped job hunting during the pandemic look to return to the workforce as restrictions ease.

“Although the furlough scheme will limit the peak in job losses, the longer-term structural unemployment caused by Covid-19, particularly among young people, may mean that the road back to pre-pandemic levels lags behind the wider economic recovery.”

Source: bbc.com