Boost for job prospects as firms reopen

A SURGE in vacancies and a slight drop in unemployment have offered signs of hope for the post-lockdown economy.

The jobless rate stood at 4.9 per cent between December and February, down from five per cent in the previous three months, despite tough lockdown rules stifling swathes of the economy.

And in March the number of vacancies advertised leapt by nearly 16 per cent.

Darren Morgan, from the Office for National Statistics, said: ‘The latest figures suggest that the jobs market has been broadly stable in recent months after the major shock of last spring.

‘With the prospect of businesses reopening, there was a marked rise in job vacancies in March, especially in sectors such as hospitality.’

A more worrying sign from the ONS figures is that the number of workers on payrolls fell by 56,000 in March after three months of increases.

Overall there were 813,000 fewer employees than in March 2020, with more than half of those – 436,000 – aged under 25. Chancellor Rishi Sunak has extended the furlough scheme to help workers through to the end of September.

The unemployment rate will soar after it ends, reaching a peak of 6.5 per cent late in the year, the Office for Budget Responsibility predicts.

But it is hoped the economy will bounce back from its record ten per cent plunge in 2020 as restrictions ease and Covid jabs continue to be rolled out, helping to soften the blow to the jobs market.

Mr Sunak said: ‘Protecting jobs and the economy has been my main focus since this pandemic began – through the furlough scheme alone we have protected 11.2 million jobs.’

Overall, unemployment stood at 1.68million between December and February, down 50,000 on the previous three months. Employment was down 73,000 on the quarter at 32.4million.

Average pay excluding bonuses rose by 4.4 per cent in February.