April Labour Market Update

The latest ONS labour market statistics have been published and while the headline figures paint a relatively gloomy picture, scratching beneath the surface and looking at wider sources, we definitely feel there is cause for optimism.

Reflecting on the latest findings, Paulo Canoa, CEO Gi Group UK said “Inevitably given rigid recent Covid-19 restrictions, the employment rate continued to fall, while the number of job vacancies in January to March 2021 fell by nearly 23% on the year.

However, when we overlay this information with data from other institutions, we see positive statistical indicators and bullish predictions from their leaders – as first highlighted by the BBC in their article.

For example, Deloitte’s chief economist, Ian Stewart predicts: “The UK is primed for a sharp snap back in consumer activity.

“High levels of saving, the successful vaccination rollout and the easing of the lockdown set the stage for a surge in spending over the coming months.”

EY is equally positive, predicting that by Q2 next year, the economy will have already returned to its pre Covid-19 levels with chief economic adviser, Howard Archer forecasting that the UK will “emerge from the pandemic with much less long-term ‘scarring’ than was originally envisaged.”

Our experience would echo this sentiment and we envisage continued growth and in particular, the number of vacancies, are set to rise. Indeed, as a business Gi Group is starting to see this effect, with demand and competition for certain roles and skills already extremely high, meaning that hiring companies need to move quickly to secure good candidates or risk vacancies going unfilled.”