Those 35 and under are struggling to find employment following cuts in sectors such as hospitality. In the three months from January to March, 811,000 jobs were lost in the UK. Under 35’s make 80% of these figures.
It is not all bad news though, unemployment has dipped 0.1%. It is at 4.9%, rather than 5% in February. The Office of National Statistics (ONS) says over five million people still remain on furlough due to Covid. Furlough has ‘subdued’ unemployment, it is set to peak towards the end of this year. This is when the furlough scheme is due to end. People who are currently not looking for work due to the pandemic will begin searching again.
The ONS did add that job market was stable following the massive dip in the spring of last year. With hospitality open again, and further restrictions due to lift again in May, the sector should see a rise in vacancies again. The Bank of England want this trend to extend to the entire economy as lockdown is eased.
A positive light for job crisis
Approximately 1.67 million were unemployed from December to February. This is up over 300,000 from the same time last year, but down 50,000 from September to December. Statistics by the ONS have shown that under 35’s are suffering, as they often hold retail and hospitality roles.
The statistics show those workers aged 35 and under account for 635,000 of the payroll jobs lost last year. Of the 635,000 people, 436,000 of these positions were held by those under 25.
This reinforces the urgent case for apprenticeship incentives to be made more generous and targeted specifically at 18 – 24 year olds. It also underlines the need to improve employers awareness of traineeships an the Kickstart scheme.
Gerwyn Davis, senior policy advisor at the Charted Institute of Professional Development
As lockdown eases and the sectors which were previously locked down open up, a rise in vacancies are inevitable. Hannah Audion, an economist at PwC, seconds this. She believes the reopening of hospitality and retail will see the gradual recovery of the labour market, provided the Governments roadmap goes to plan.
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