Joanne Frew, Global Deputy Head of Employment & Pensions, at DWF comments on the ONS labour market figures published today. She said:
"The latest ONS figures show continued recovery in the labour market. The headline figures between June and August 2021 offer encouragement, with the UK employment rate estimated at 75.3%, 0.5% higher than the previous quarter. Further, the UK unemployment rate was estimated at 4.5%, 0.4% lower than the previous quarter. It is perhaps unsurprising that the figures show continued improvement with the so called "freedom day" of 19 July 2021 falling exactly in the middle of this period, when a large raft of restrictions were lifted. The impact of isolation rules being eased from 16 August 2021 have not yet truly been reflected in the labour market figures.
"With the Coronavirus Job Retention Scheme officially closed from the end of September 2021 we are yet to see the impact on the labour market; on a positive note the latest ONS figures show the redundancy rate remains at pre-pandemic levels. The government has launched a £500 million Plan for Jobs expansion in the hope of mitigating the impact of the end of furlough. Although clearly a step in the right direction, it may be too little too late for some of the hardest hit sectors, such as the travel industry.
"As we look ahead at the UK labour market, much will depend on how the autumn and winter months unfold. The government has set out its Covid-19 Response: Autumn and Winter Plan 2021 detailing a roadmap based on the number of infections and the impact on the NHS. If Plan A comes to fruition and restrictions can be kept to a minimum, we expect the labour market to remain relatively robust."
Latest Scotland labour market data shows continued recovery
Ann Frances Cooney, employment law Partner leading the Scottish employment law practice at legal and business services provider, DWF, comments on today's latest Labour Market Trends. She said:
"The latest labour market figures for Scotland show continued recovery. The headline figures for June to August 2021 show an estimated unemployment rate of 4.4%, remaining the same over the quarter. By way of comparison, Scotland's unemployment rate was slightly below the UK rate of 4.5%. The estimated employment rate was 74.3%, an increase of 0.3% over the quarter. Scotland's employment rate was below the UK rate of 75.3%. A large raft of Covid restrictions were eased in Scotland on 9 August 2021, which undoubtedly will have helped contribute to the relatively robust labour market figures.
"With the Coronavirus Job Retention Scheme officially closed from the end of September 2021 we are yet to see the impact on the labour market. The government has launched a £500 million Plan For Jobs expansion in the hope of mitigating the impact of the end of furlough. Although clearly a step in the right direction, it may be too little too late for some of the hardest hit sectors, such as the travel industry.
"As we look ahead, much will depend on how the autumn and winter months unfold. We watch with hopeful anticipation that infection rates and in turn the pressure on the NHS can be kept under control, allowing restrictions to be kept to a minimum, giving the labour market further opportunity to recover."
