Policy Spotlight with Rhouda: Why are fewer people employed now compared to before the pandemic?

Despite the PM stating that 430,000 more people are now in work compared to before the pandemic, the head of the UK Statistics Authority, Sir David Norgrove, said that the number of people in work was estimated to be 660,000 fewer than before the pandemic. He suggested that the Prime Minister had excluded the fall in self-employment numbers when making the claim.

Through the Staffordshire Chambers Employment, Skills and HR Forum, our members have highlighted the difficulty to find good quality staff as well as retaining the current staff that they have. The number of job vacancies from November 2021 to January 2022 rose to a new record of 1,298,400 which is an increase of 513,700 from its pre-coronavirus level (ONS data). Firms are struggling to attract and retain talent and the situation has been made more difficult due to the pandemic, as more workers are keen to be employed by a company that offers flexibility. The pandemic has created a need for new jobs with new demand.

Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “The skills and staff shortages which are being experienced by firms in different sectors across the nation has been ongoing for the last few years due to Brexit and the pandemic.

“Employers understand how difficult it is to get good quality employees who have a sense and purpose towards the business, and with the job market being so buoyant the fear of losing reliable and skilled workers is increasing.

“Chambers across the network have been urging the government to help people access rapid retraining opportunities for in-demand jobs so that businesses have access to skilled workers at a much faster rate. It is also critical that more support is provided for older workers to pivot to more sustainable jobs in a progressive workforce.”

So why are unemployment rates the highest they have been since the start of the pandemic if there are so many jobs in the market?

In the current job market, employees have the opportunity to be more demanding. Businesses are finding that fewer young people are applying to vacant positions than before. One of the reasons suggested has been due to the fact that places of education encourage younger people to stay in education rather than discuss job opportunities and apprenticeships.

It is important that firms are able to meet the needs of their employees so that they can ensure that their workforce is as productive as it can be. However, some firms, especially those in the manufacturing and construction sectors, fear that despite offering apprenticeships and higher salaries, fewer people are willing to work in sectors that struggle to offer flexibility such as remote and hybrid working or flexible hours.

Staffordshire Chambers is keen to connect businesses with places of education so that young people are aware of the job opportunities available to them and the progression that they can make by working within certain sectors. Key partnerships are crucial at this time as improving the UK workforce will support the country’s productivity and international competitiveness.

 

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