Good morning, and welcome to our rolling protection of the world economic system, the monetary markets, the eurozone and enterprise.
Britain’s unemployment charge has risen to its highest stage since early 2016, because the Covid-19 pandemic continues to hit the labour market – notably youthful staff.
However, there are additionally indicators that the roles market is stabilising, with a small improve within the variety of payrolled workers in December and January, and a pick-up in vacancies.
The UK jobless charge rose to five.1% within the final three months of 2020, based on the newest official labour market figures. That’s up from 5% a month earlier — and simply 3.8% on the finish of 2019.
It’s the very best in nearly 5 years, however the jobless charge continues to be decrease than through the monetary disaster a decade in the past (with the furlough scheme cushioning the influence of the lockdown.).
The Workplace for Nationwide Statistics studies that since February 2020, the variety of payroll workers has fallen by 726,000 — displaying the dimensions of final yr’s job losses.
Encouragingly, although, 83,000 extra folks have been in payrolled employment in January than in December, the second month-to-month improve in a row after the November nationwide lockdown.
The variety of vacancies additionally rose on the finish of 2020, however there are nonetheless solely three-quarters as many alternatives as a yr in the past.
Workers initially of their careers have born the brunt of the pandemic job losses, because the ONS says:
New evaluation by age band exhibits that the 18 to 24 years age group has seen the best lower in payrolled workers since February 2020.
The ONS additionally studies that, in October to December 2020, there have been 32.39 million folks aged 16 years and over in employment, 541,000 fewer than a yr earlier. This was the biggest annual lower since Could to July 2009.
Listed here are the important thing factors from the report:
- In January 2021, 83,000 extra folks have been in payrolled employment compared with December 2020; that is the second consecutive month-to-month improve.
- In January 2021, 726,000 fewer folks have been in payrolled employment compared with February 2020.
- The UK employment charge, within the three months to December 2020, was estimated at 75.0%, 1.5 proportion factors decrease than a yr earlier and 0.Three proportion factors decrease than the earlier quarter.
- The UK unemployment charge, within the three months to December 2020, was estimated at 5.1%, 1.Three proportion factors larger than a yr earlier and 0.four proportion factors larger than the earlier quarter.
- The redundancy charge, within the three months to December 2020, was estimated at 12.Three folks per thousand workers.
- The Claimant Rely elevated in January 2021, to 2.6 million; this contains each these working with low earnings or hours, and those that will not be working.
- There have been an estimated 599,000 vacancies within the UK in November 2020 to January 2021; that is 211,000 fewer than a yr in the past and 64,000 greater than the earlier quarter.
Extra response to comply with…
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- 7am GMT: UK unemployment report for the three months to December
- 10am GMT: Eurozone inflation report for January
- 11am GMT: CBI distributive trades survey of UK retail in February
- 2pm GMT: US home worth index for December
- 3pm GMT: US Federal Reserve chair Jerome Powell testifies to Congress