It is clear that many sectors are holding back on hiring during the fight against the second wave of the virus, but the hiring rate in some sectors is now at pre-pandemic levels. The jobs in logistics, warehousing, production and cleaning are currently in the positive area. The rate of unemployment is expected to deteriorate significantly into the winter. These are definitely tough times ahead but there is indeed a sustained recovery in hiring.
The UK Job Market
It is clear that many sectors are holding back on hiring during the fight against the second wave of the virus, but the hiring rate in some sectors is now at pre-pandemic levels. The jobs in logistics, warehousing, production and cleaning are currently in the positive area. The rate of unemployment is expected to deteriorate significantly into the winter. These are definitely tough times ahead but there is indeed a sustained recovery in hiring.
The UK’s unemployment rate hit 7.6% in 2009 after the economic crash, peaking at 8.1% in 2011. This is reflected in a 4.5% monthly increase over the past year and a half, but also in a 3.7% decline in recent months.
At the height of the recession in 2008, hundreds of skilled workers were unemployed in the UK, but companies can now increase their recruitment numbers as the economy stabilizes. Oxford Economics estimates that the national unemployment rate would have been closer to 9% if those who had stopped looking for a job had been included. Nationwide, the jobless rate fell from an adjusted 6.3% in January to 6% in February, according to the BLS. The level of discouraged workers has remained steady since the end of last year, after hitting a peak of 7.5% last month, the company said.
Information Technology
The growth of the digital age is creating an influx of new jobs in the IT sector, and it is clear that the demand for IT professionals is increasing. According to a new report from recruitment consultancy CareerBuilder, recruitment had peaked in 2015 at its highest point in more than a decade and has remained fairly consistent. According to CareerBuilder, there will be around 105,000 IT jobs listed on the stock exchange in the UK in 2021, which is up by 4.5% from the previous year.
Hospitality and Tourism
Hospitality and tourism are also badly affected, with the number of jobs in food preparation and services falling by 54% over the same period. A study by the Adzuna employment agency has shown that in recent years more than half of all advertised jobs in the tourism and hospitality sectors have been lost following the permanent closure of pubs and restaurants.
However, recovery is hoped for in the early second quarter of 2021 owing to the effectiveness of the vaccines. It may take time and happen in phases starting from domestic leisure travel.
In Conclusion
The UK labour market will look different in 2021 as different sources suggest different views on Brexit and jobs. Brexit will have an impact on the stability of the UK labour market, but the true impact of Brexit is still unclear. The Coronavirus pandemic could shake up Britain’s labour markets, while jobs could simply disappear or Brexit could cause job losses elsewhere in the world.
However, it is encouraging that we have not seen the biggest drop in vacancies and hiring since the first national lockdown. Since January this year, the volume of job advertisements in the UK has grown faster than two years ago. Things are looking up again.
