The UK labour market is rebounding with a bang. Unemployment has fallen dramatically, with job vacancies hitting a record high since the pandemic began.
According to the latest official figures from the Office for National Statistics (ONS), the market is seeing a very positive uplift:
The unemployment rate fell to 4.7% in the three months to June
The number of vacancies hit 953,000 in the three months to July
The annual growth in average pay was 7.4%
However, the apparent rise in wages needs to take certain factors into consideration. While the average pay increase is hitting new highs for 2021, it needs to be compared to last year when millions were on furlough and not receiving their full salary.
“This time last year, we had millions of people on furlough, many getting 80% of their wages, other people having their hours cut, and that pushed wages down,” explained
ONS deputy statistician Jonathan Atho.
“So, when we look at wages this year, when people have come back from furlough, it’s really been boosted by the fact that last year wages were quite low. Some of this group was just wages returning to the level before the pandemic.”
While the outlook is extremely positive, we are still not quite back at pre-pandemic levels of employment
While the outlook is extremely positive, we are still not quite back at pre-pandemic levels of employment. The ONS figures revealed that although payrolls rose by 182,000 between June and July, the overall number on the payroll is still 200,000 lower than pre-Covid levels.
However, the number of people on payroll has grown over half a million in the past three months. This shows a regain of four-fifths of the drop seen at the start of the pandemic. Cause for celebration indeed!
We’re delighted to be part of this positive trend. With five new vacancies at our Head Office in Heathrow, AWL is expanding at speed. Take a look at the roles available – maybe one is right for you?