Amidst the pandemic, many employees have faced redundancy and therefore left jobless. An overwhelming amount of unemployment has resulted in anxieties across the country about how to make ends meet. Fortunately, there is light at the end of the tunnel, with the government announcing an increase in job opportunities and a potential pay increase for the nation. This blog will provide an update on the employment statistics of the current labour market. If you are also a business recruiting new staff, this can be made easier by outsourcing your payroll.
Record Rise in Job Vacancies
Job prospects in the UK are the highest on record as lockdown eases. Unemployment had decreased in June as workers made redundant during the Covid-19 outbreak appeared to positively respond to a record rise in job vacancies. This has allowed an influx of the unemployed to re-enter the labour market and secure employment.
The rate of those without work dropped to 4.7% in three months to June, 0.2% lower than the previous quarter according to the Office for National Statistics. In July, the number of job openings passed 1 million for the first time on record. This is because the reopening of the economy and the high demand for staff in some industries has pushed a large number of people back into work.
The HMRC has optimistically stated a ‘strong recovery’ in the labour market. With around 2 million people still on furlough, the number of pay-rolled employees has increased by 182,000 to 28.9 million. Here at Happie Group, we take pride in providing you with trustworthy payroll services to help you take on the increased number of employees on your payroll.
Employers are Recruiting Again
Recruitment companies are seeing a rise in job advertisements over the past year, particularly in the hospitality and entertainment sectors. However, there is a cause for concern that some employers could potentially face staff shortages.
The number of workers on a payroll system has risen by 97,000 between March-April but still slightly below the figures before the pandemic struck. Needless to say, the economy is heading towards recovery and is set to grow at the fastest rate in 70 years.
Increase Pay for Workers
Most public sector workers are likely to enjoy modest increases in their pay from next year. The strong growth in the number of jobs available and filled, with the rise in wages, will unlikely change the view of the Bank of England. Representatives of the bank foresee that the wage increase will lose momentum when the economy returns back to ‘normal’ levels of activity.
The chancellor, Rishi Sunak has said, “Today’s figures show that our plan for jobs is working – saving people’s jobs and getting people back into work. I know there could still be bumps in the road but the data is promising – there are now more employees on payrolls than at any point since March 2020, and the number of people on furlough is the lowest since the scheme launched.”
At Happie Group, we can help assist your transition back into a thriving economy by outsourcing your payroll. With new recruits on board and a growing number of employees on your payroll system, we can advise you on our outsourcing services.
Contact us today for further information on the services we provide and get your business running smoothly once again.