Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

Cracks are beginning to show in the labour market, says Deloitte

Sep 15
 
Tags: Deloitte
Share this story:
Cracks are beginning to show in the labour market...

The latest labour market figures have just been released by the Office for National Statistics (ONS) and despite the fact that July saw many areas starting to reopen in the wake of lockdown, unemployment grew.

What this says about the jobless rate and how it’s likely to increase further when the government’s salary-support scheme comes to an end in the autumn is very telling.

Debapratim De, senior economist at Deloitte, said: “The furlough scheme has been very effective in cushioning the blow from the pandemic to the labour market. But cracks are beginning to show, with unemployment rising – particularly among younger workers - and redundancies hitting their highest level in almost eight years.

“Although growth has bounced back in the third quarter, the recovery is likely to be slow and uneven, with a sharp rise in unemployment almost unavoidable once the furlough scheme ends.”

A rise of 104,000 people were unemployed in the three months up to July, putting the total at 1.4 million. This is an increase of 0.2 percentage points, bringing the overall proportion to 4.1 per cent and the biggest increase seen so far since the beginning of the pandemic.

With a number of key areas of the economy reopening, many people who had been furloughed or working from home could return to work. This is thought to equate to around two million people.

The Job Retention Scheme, which was launched at the beginning of lockdown, helped keep nearly ten million employees on the payroll. It comes to an end on October 31st and already, some companies have started to lay off staff.

Further figures from the ONS suggest that 36,000 members of staff were let go from private firms in August. Many economists believe the unemployment rate could stand at eight per cent by the end of the year.

Search Mindbench.com for the latest management consultancy jobs and consulting recruitment opportunities, or contact us on +44(0)207 089 9017.

Share this story:
Add new comment
Jobs Related to this Post
4 result(s) found 
Page 1 of 1 

£45k-£70k plus bonus, benefi...
Central London, good work/life balance
Our client is a global management consultancy and they are on an exciting growth trajectory. They help tier-one enterprise clients across a range of industries and global locations transform
€80,000 - €120,000 plus bonus, benefit...
Paris France
Our client is the leading strategic consulting company in the water industry. Their work varies from innovative start-ups to large global industrial companies and private equity investors worldwide
$90k-$140k plus bonus, benefits
Philadelphia United States
Our client is the leading strategic consulting company in the water industry. Their work varies from innovative start-ups to large global industrial companies and private equity investors worldwide
£70k-£75k base plus equity, ...
Central London
Our client is transforming the way that people and cargo are moved around urban and rural environments. They are expanding rapidly and have plans to grow significantly further in the next 12 months