Britain The country is experiencing a “jobs miracle” that has brought down national unemployment to a fraction of the pre-pandemic levels.
The Office for National Statistics (ONS), which provides a positive overview of the UK’s economy, reported that the unemployment rate dropped to 4.1% between September and November.
This left unemployment only a fraction higher than the 4 percent seen prior to Covid, and well below the current eurozone level of 7.2%. It is also far from the doom-laden predictions of 9 percentage points as the coronavirus crisis broke out.
Further, December saw record hiring of 184,000 people by companies. The vacancy rate stands at 1.25million.
This came days after another ONS report, which showed that economic output had exceeded pre-pandemic levels in November.
According to the Office for National Statistics, the unemployment rate dropped to 4.1% in September and November. This is just 0.2% more than the 4% before Covid.
Economists hail an “employment miracle”, while Tory MPs praise Boris Johnson’s handling of the crisis.
Furloughs were a key factor in the health of the job market. They supported thousands of people when they couldn’t work, and stopped mass redundancies.
However, the prime minister’s plans to open the economy over Christmas were also supported by the more than anticipated jobs numbers.
Frontbenchers from Labour had been pressing for new restrictions on the Omicron variant, despite warnings about the potential increase in redundancies.
The left-wing critics warned, however, that unemployment would rise sharply if September saw the end of furlough.
According to economists, Johnson’s plan was not able to reverse Britain’s decline.
Many of the European countries that are suffering from Britain’s economic recovery are now being beaten by it. While Britain’s unemployment rate stands at a low level compared to the eurozone, France, Italy, and Spain each have much higher rates.
In December UK employers added 184,000 new jobs, a record number that was not affected by the ending of the furlough programme. Pictured: Waitress at Manchester’s Home Sweet Home restaurant
Sir Iain Duncan Smith, ex-leader of the Tories, said that Mr Johnson made the right decision not to lock down before Christmas. He added: “He understood that work is important, especially to the most vulnerable in this country, and it’s vital to keep the economy moving. Working is the only way out of poverty.
“The numbers today reveal that the UK has a job miracle compared with other countries.
Euler Hermes is an insurance company that provides coverage for international trade agreements. It predicted that the UK would experience a 4.4% increase in its economy this year. That was higher than both the EU or the US.
Ana Boata, the economist of the company said that trade will be increased by lifting Covid restrictions.
The end of furlough did not deter UK employers from adding record numbers of jobs in December.
There are now a total of 29.5million employees on companies’ books – some 409,000 more than before the pandemic.
Hiring in hospitality and food service businesses boosted the numbers. Pubs and hotels also had more employees to help prepare Christmas. The future looked bright, with no signs of slowing.
As companies battle to recruit staff, job openings reached an all-time high of 1.25 million between October and Dezember.
The demand for social and medical work was especially high, with the number of vacancies hitting a new record of 206,000.
Jack Kennedy, UK economist, stated that the Omicron storm broke down in December but that the booming jobs market had barely been thrown off its course.
Samuel Tombs of Pantheon Macroeconomics in the UK, was the chief economist. He said the UK was “in the midst” of an employment revolution.
Economists extolled an ’employment miracle’, while Tory MPs applauded Boris Johnson’s handling of the Covid-19 crisis.
He said that there was an increase in employment and that redundancies were at their lowest level since 1995.
Tombs continued: “That’s astounding, given that at September’s end, the furlough system was shut down with 646,000 furloughed staff and 505,000 additional furloughed over a few hours during the final day.
Labour criticised the Government for withdrawing the £70billion scheme at the end of September, branding Mr Johnson ‘cruel’.
However, the predicted wave of redundancies did not materialize.
Danni Hewson, of investment platform AJ Bell said that Furough was the cotton wool which protected the UK’s job market from Covid’s ravages.
“The scheme’s end filled people with fear and anxiety, as well as a concern that the remaining beneficiaries would lose their job. This led to high unemployment.
“The truth is interesting with record levels of job vacancies and more employees than ever before the pandemic. The redundancy rate has also reached a new record low.”
But the cost of living crisis continues to grow as wages stagnate and food prices rise
The Daily Mail’s Chief City Reporter
Rising inflation has prompted a drop in wages for workers, which is the first time that this happened in over a year.
Yesterday’s figures from the Office for National Statistics showed that November inflation was not being matched by wages.
Average pay rose 3.5 per cent in the 12 months to November, but it came as inflation – or the rise in the cost of living – hit a decade high of 5.1 per cent.
According to the ONS this led to a 1% drop in real wages.
According to Resolution Foundation the decline in real wages has occurred for the third time in a decade. It follows the 2011-14 slump that followed the financial crisis, and 2017’s hit by the EU referendum.
Prices for food are rising. The biggest increases in annual prices have been seen in Royal Gala apples (up 14%), free-range eggs (up 12%), onions (11%), and milk (10%)
Hannah Slaughter is a senior economist with the think-tank. She said that despite widespread talk about returning wage spirals in Britain, Britain actually experiences a return to shrinking pay packets.
The latest phase of falling real wage is expected to begin as recently as last year, and it is most likely that will continue well into the next season.
According to Which? research, prices for food are on the rise.
Aldi and Lidl—the nation’s most popular budget chain stores – are increasing prices because of rising wages, transport costs, and other factors.
Royal Gala apple, which saw an increase of 14%; free-range eggs, 13%; and onions (11%) were the biggest increases in annual growth. Milk was up 10%.
Which? According to research, the average annual cost of buying essentials for shopping rose by 3 percent.
Waitrose was the most expensive retailer at £32.85, a rise of 9.2 per cent. Lidl, where prices increased 5.13 per cent, was the cheapest at £23.29. Sainsbury’s prices rose by 0.59 percent, the lowest increase.
Which? Ele Clark, retail editor said that no one would want to pay too much for basic groceries. Our results show that although prices are rising, supermarkets have been more successful in passing on their increasing costs to consumers.