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Job Vacancies Reach Record High

It has been reported by the Office for National Statistics (ONS) that the number of job vacancies has reached a record high. Between July and September 2021, it totalled to 1,102,000 an increase of 318,000 before the first national lockdown, March 2020. In August to October 2021 there was a further rise of 172,000. This equates to 15 out of 18 industries being a record high with a ratio of 1:3 of unemployed person to vacancy. Unsurprisingly, accommodation and food industries showed the most increase of 79% (66,500). Furthermore, the construction (41.1%) and transport and storage (40.4%) also had large growth rates. All of which support the evidence that many businesses are battling to fill vacancies due to a number of social and economic issues. However, it has shown to be slowing per quarter across all industries.

Darren Morgan, director of economic statistics at the ONS commented “The jobs market has continued to recover from the effects of the coronavirus, with the number of employees on payroll in September now well exceeding pre-pandemic levels. Vacancies also reached a new one-month record in September, at nearly 1.2 million, with our latest estimates suggesting that all industries have at least as many jobs on offer now as before the onset of Covid-19.”

Furthermore, data has also shown salaries are on the rise, especially in sectors where shortages are most acute. The ONS data showed annual growth in average pay, excluding bonuses, was up by 6% between June and August. However, many industries are suffering from skill shortages and gaps.

Additionally, Gerwyn Davies, senior labour market adviser at the Chartered Institute of Personnel and Development (CIPD), cautioned that figures also masked a steep increase in the number of temporary contracts. “Virtually all of the extra jobs that have been created since the onset of the pandemic are for temporary staff. This is mainly due to an uncertain business environment and the need to fill temporary shortages caused by self-isolation”

With this in mind and such uncertainty and disruption across all industries, companies are having to deal with fluctuations of staff.

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Lindström Group