Jobs market turbulence after furlough fails to rear its head as Brits in work swells 0.6 per cent to over 29m
An expected wave of job losses after government support measures propping up the jobs market were pulled has seemingly been averted.
The number of payrolled employees climbed 160,000 over the last month, or 0.6 per cent, to 29.3m. This is the first period which the Office for National Statistics (ONS) has examined the labour market when the furlough scheme has not been live since the start of the pandemic.
Sam Beckett, head of economic statistics at the ONS, said: “October’s early estimate shows the number of people on the payroll rose strongly on the month and stands well above its pre-pandemic level.”
Granular data published by the ONS show employers are rushing to hoover up workers looking for a job at a record print.
The volume of Brits now in work swelled 247,000 over the last quarter, while the number of people who moved from being unemployment into employment jumped 304,000 over the last quarter, the highest reading ever.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “The further strong rise in payroll employee numbers in October confirms that unemployment did not jump as soon as the furlough scheme ended.”
Meanwhile, vacancies again scaled to new record highs, hitting over 1.17m, up 388,000 compared to before Covid-19 struck.
Chancellor Rishi Sunak said: “Today’s numbers are testament to the extraordinary success of the furlough scheme and welcome evidence that our Plan for Jobs has worked.”
“We know how vital keeping people in good jobs is, both for them and for our economy – which is why it’s fantastic to see the unemployment rate falling for 9 months in a row and record numbers of people moving into employment.”
The unemployment rate dipped 0.5 percentage points over the three months to September compared to the previous quarter, shrinking to 4.3 per cent.
However, the labour market has not fully repaired from the damage inflicted on it by the Covid-19 crisis. The joblessness rate is still 0.3 per cent higher compared to pre-pandemic levels.
More to follow.