"The latest ONS labour market figures show a continued recovery of the market. The highlights for the period between November 2021 and January 2022 show an estimated UK employment rate of 75.6%, 0.1% higher than the previous quarter. The UK unemployment rate was estimated at 3.9%, 0.2% lower than the previous quarter and significantly returning to pre-pandemic levels. The figures represent a relatively challenging period in the journey of the pandemic with the Coronavirus Job Retention Scheme closed and the Omicron variant leading to tighter restrictions. The labour market has yet again demonstrated its resilience.
"Although there are some peaks in the number of people contracting Covid-19 across the UK, hospital number remain relatively low. As far as the impact of Covid is concerned, as we adapt to the next phase of living with Covid we would expect the labour market to remain stable in the short to medium term. However, the war in Ukraine and subsequent potential increases in costs of material may yet have an impact on the UK labour market and there could be more challenging times ahead.
"For now, many employers are taking the opportunity to consider the next step out of the pandemic carefully as restrictions are eased and there is a move to personal responsibility. A recent survey from the Chartered Management Institute found that 84% of firms had adopted hybrid working. With retention and recruitment difficulties continuing, employers are having to think of new and innovative ways to attract the best talent, as well as the more traditional route of increased pay."
