There’s no overstating it: 2020 was tough. 4.5 million workers remained on furlough in January 2021, and this was only a fraction of the amount that had experienced it at some point through 2020. Over 454,000 people were made newly unemployed in 2020. They remained unemployed at the end of the year: a result of both the furlough scheme’s projected end, businesses in many sectors ceasing to operate and restructures held in businesses that remain open.
The most recent labour market review conducted by the Office for National Statistics in March 2021 uncovered some worrying predictions moving forward. Although minimal gains have been made in the overall number of people on a company payroll, the number of job vacancies is down almost 30% compared to the previous year.
Moreover, over 60% of those who have lost a job were aged 25 or under, suggesting they may not have as much experience as their older counterparts and therefore are less likely to have the transferable skills required for them to be seen as desirable by employers. Exact statistics vary between geographic areas, but employment rates remain the highest in the locations least affected by coronavirus (such as the Isles of Scilly) and the lowest in areas most affected (such as central London).
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