The Scottish Secretary, Alister Jack, has today welcomed the latest labour market statistics published by the Office for National Statistics (ONS), which indicate a fall in unemployment across the UK. The figures, covering the period from February to April 2021, show a decrease in the overall unemployment rate, offering a glimpse of economic recovery as lockdown restrictions continue to ease across the country.
According to the ONS data, the UK's unemployment rate fell to 4.7% in the three months to March, down from 4.9% in the previous quarter. This represents a decline of 0.2 percentage points and is lower than many economists had anticipated. The number of people in employment also saw an increase, rising by 84,000 in the first quarter of 2021, suggesting a cautious but discernible return to growth in the job market.
Mr Jack emphasised that the figures underscore the effectiveness of the UK Government's support measures, such as the Coronavirus Job Retention Scheme (furlough), in protecting jobs throughout the pandemic. He stated that the government remains committed to building back stronger and creating new opportunities, particularly for young people entering the workforce. The ONS also reported a slight decrease in youth unemployment, although this demographic remains disproportionately affected by job market fluctuations.
However, the Labour Party's Shadow Secretary of State for Scotland, Ian Murray, offered a more cautious interpretation. While acknowledging the positive headline figures, Mr Murray highlighted concerns about the lingering impact of the pandemic on specific sectors and regions, and the potential for a 'cliff edge' when government support schemes eventually wind down. He called for a more targeted approach to job creation and training to address long-term unemployment and underemployment.
The ONS data also revealed a continued rise in the number of payrolled employees, increasing by 97,000 between March and April 2021, reaching 28.5 million. This growth, while positive, still leaves the total number of payrolled employees 772,000 below pre-pandemic levels in February 2020. Average total pay, including bonuses, grew by 5.6% in the three months to March 2021 compared with the same period a year earlier, largely influenced by comparisons with the early stages of the pandemic.
Economists suggest that the coming months will be crucial in determining the true trajectory of the UK's labour market. As the furlough scheme is gradually phased out, attention will turn to whether businesses are confident enough to retain and hire staff, or if a significant rise in unemployment could still materialise. The Bank of England will be closely monitoring these trends as it assesses the broader economic outlook and potential inflationary pressures.
Source: Office for National Statistics