The turn of the year brought a rapid reduction in NEETs relative to general unemployment. Higher education has had a significant impact on this figure. Whilst employment in 16-24 year olds seems to play a part, a broader assessment presents concerning conclusions.
Tax receipts were pummelled due to lower economic activity associated with the COVID pandemic. This chart highlights the development of notable duties that together help to highlight the effect of the pandemic on government income. Use the interactive chart to focus on specific duties.
The rise in CPI to recent highs of 2.5% in June left many observers warning of persistent inflationary pressure. Nevertheless, the Governor of the Bank of England, Andrew Bailey, cautioned against overreacting to a ‘temporary’ jump in inflation. CPI figures from July seem to have justified his advice, with the headline year on year inflation rate falling to the government’s target of 2%. Despite this, the data strongly suggests that it is too early to claim victory.
Assessing business births and deaths provides another angle to test perceptions of the UK economy, placing greater emphasis on the plight of smaller businesses that account for 60% of private sector employment in the UK.
The pandemic, as well as the government’s response to it, has accelerated the growth in house prices relative to rental prices, and weakened the London housing market relative to the rest of England.
Investors have flocked to those sectors which they believe will benefit from lasting post-pandemic trends, and avoided those that have proven less resilient – with Information Technology up 29% at one extreme, and Energy down 41% at the other.