Prior to the pandemic, a clear negative relationship existed between vacancies and unemployment. The experience of 2020 challenged this relationship and seemed to indicate labour market inefficiencies.
Covid 19: Effect on Job Vacancies by Sector
Those in lower-earning jobs offering £15-£25 thousand per annum (less than London Living Wage) are worst affected. Higher paid jobs’ greater likeliness to be conducted from home is partly reflected in the far lower reduction in available positions.
Chart of the Week: Week 29, 2018: Historical UK Unemployment & Vacancies vs Migration
Following the recession, unemployment increased to its highest level since 1995 at 8.4% of the workforce in 2011 Q4. It has since recovered, halving to its current rate of 4.2%, (898,700 persons) , its lowest since 1975. Recent trends in job vacancies and unemployment are…