Predictions that the UK would see a huge rise in unemployment following the phasing out of the Coronavirus Job Retention Scheme, or furlough, appear to be wide of the mark.
Figures from the Office for National Statistics show job vacancies are up with the unemployment rate having fallen from 4.9 per cent to 4.7 per cent.
The ONS statistics also show that working hours are still to return to pre-Covid levels, but the redundancy rate dropped to 3.6 per cent for the quarter.
Within the construction sector, the figures are particularly stark with the level of vacancies at its highest level in 20 years.
Recent figures showed there were 38,000 construction job vacancies for the period between May and July this year, up from 32,000 between April and June.
Survey results from the employment website, Indeed, also revealed that just 11 per cent of workers still on the furlough scheme which ends on 30 September, were actively looking for jobs.
The survey found reasons for job search inactivity included many having sufficient savings, fears over returning to the workplace with Covid still a threat with others citing child care and access to benefits for the lack of urgency.
The survey also found that 41 per cent of those still on furlough are not searching for other work, along with over 56 per cent of those not currently working.
Jack Kennedy, UK economist at Indeed, warned about being complacent about finances and said employees on furlough appear to be taking a relaxed approach.
He said on his Twitter feed: “Among the unemployed, a sense of financial security is allowing some to be choosier about the jobs they search and apply for. Around 30 per cent of unemployed people who are not urgently looking for work said they had a financial cushion sufficient for some time.”
Samantha Randall, an Associate Solicitor and employment law expert with Palmers, said: “The current recruitment difficulties within the construction sector illustrates the need to ensure everything possible is done to maximise worker retention.
“A review of your Good Work Plan to ensure contractors are offered stable contracts and your statement of main terms provide attractive pay and annual leave entitlement will help to retain existing workers and attract new candidates.”
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