The Coronavirus Pandemic impacts significantly on the labour market
In April of this year, the statistics covering the period of December 2021 – February 2022 in relation to the labour market in the UK were published.
Key findings included the fact that although there was a fall in unemployment from the previous quarter, that in fact economic activity rose. As employment levels slowly come back to below pre-pandemic levels, all eyes are on the surge in inflation figures which not only will have affect our cost of living but mean a decrease in real wages.
Statistically it also emerged that the pandemic impacted on workers aged 18-24 and 65+, with the hospitality and large segments of service industries hit hardest.
In March 2022, the number of people claiming unemployment benefits remain almost 500,000 higher than March 2020. Government supports such as the (CJRS) the coronavirus job retention scheme, and the (SEISS) the self-employment income support schemes wound down at the end of September last year, and many workers were able to return to employment.
It must be noted that many workers are still disproportionally economically impacted by the pandemic, and they include, young workers, low paid workers, and disabled workers.
The service industries accounted for an astonishing 80% of the total UK economic output and 82% of employment in April-June 2021. In the first quarter of 2022, services output has increased just under 10% year on year.
If your business has been impacted by the challenges of staff retention, or if you need some clarity around how your taxation and payroll can be reconciled, do not hesitate to contact us at Rawlings & Co to arrange an appointment.
*Source Commons Library