Foundation warns of ‘uneven’ economic recovery

The Joseph Rowntree Foundation has warned that while there are signs of a post-lockdown economic recovery, it remains ‘uneven’.

A new analysis published today by the Foundation shows that the number of new vacancies rose by more than 50 per cent during July, and more than 169,000 vacancies were notified during the first week in August, suggesting a rebound in some sectors.

But it also shows that there are still nearly half a million fewer vacancies than there were at the start of the crisis – with job openings running at just one third of the level that they were at this time last year.

And despite the increase in vacancies, the areas with a high number of people out of work per vacancy have remained consistent in the last few months.

The analysis, by the Institute for Employment Studies (IES) and funded by the Joseph Rowntree Foundation (JRF), uses vacancy data collected by Adzuna (www.adzuna.co.uk) – one of the UK’s largest job search engines.

Areas with high numbers of people out of work for each vacancy have been concentrated in Scotland, Wales and Northern Ireland, some areas of outer London and parts of northern England outside the larger cities.

Areas with fewer people out of work per vacancy include inner London, and cities and towns in the south of England.

‘After the uncertainty and worry of lockdown, there are definite signs that parts of the job market have weathered the storm and are now showing signs of recovery,’ said the Foundation’s head of economics, David Innes.

‘But as before, that recovery is uneven. In areas where there are many people out of work for every vacancy, the government’s Plan for Jobs will have to create new opportunities for people to feel the benefits of recovery.

‘Work should offer people a route out of poverty and the chance to build a better life for themselves and their families. It is essential that the recovery reaches people in areas and sectors which are struggling to recover if the government is to truly level up the economy so that it works for everyone.’

Commenting on the figures, Institute for Employment Studies director Tony Wilson, said: ‘The recovery in vacancies reported in July appears to have carried on into August, with 170 thousand new jobs notified in the first week of this month. New vacancies are now running at one third below the same time last year, compared with a gap of two thirds just a month ago.

‘The overall level of vacancies is now broadly in line with the picture in the early 2010s as we emerged from the last recession. With data last week showing that over one and a half million people started a new job during lockdown, these figures give us some reassurance that there are jobs out there, and more are becoming available all the time as the economy reopens.’

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