Fewer claiming in Shropshire as unemployment falls with firms reopening after lockdown

The number of workers on UK payrolls fell for the first time in four months last month, but job vacancies surged as businesses prepared to reopen after lockdown.

The Office for National Statistics said the number of payrolled workers dropped by 56,000 between February and March as the pandemic continued to take its toll on the jobs market.

Overall there were 813,000 fewer workers on payrolls than in March 2020.

But there were further signs that the jobs sector is stabilising, with the first quarterly fall in the unemployment rate since 2019 between December and February and statistics signalling a near 16 per cent jump in vacancies in March.

The unemployment rate eased back further to 4.9 per cent from five per cent in the previous three months, the ONS said.

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The UK unemployment total was 1,67 million – 50,000 down on the quarter but up 311,000 on a a year ago.

For the West Midlands, the unemployment figure for the three months to February was 163,000 – 14,000 down on the previous three-month period – and a rate of 5.5 per cent of the working population which was down from six per cent in March.

The number in employment in the region was 2.78m.

The number claiming unemployment benefits, including Universal Credit, in the West Midlands dropped by 300 last month to 271,130 (7.4 per cent).

In Shropshire the number claiming was down by 105 at 8,640 (4.5 per cent) with Telford and Wrekin also falling by 65 to 6,645 (six per cent). In Powys claimant numbers were down 35 to 3,320 (4.4 per cent).

Chancellor Rishi Sunak said: “Protecting jobs and the economy has been my main focus since this pandemic began – through the furlough scheme alone we have protected 11.2 million jobs.

Stable

“As we progress on our road map to recovery I will continue to put people at the heart of the Government’s response through our Plan for Jobs – supporting and creating jobs across the country.”

Darren Morgan, director of economic statistics at the ONS, said: “The latest figures suggest that the jobs market has been broadly stable in recent months after the major shock of last spring.

“The number of people on payroll fell slightly in March after a few months of growth.

“There are, though, over 800,000 fewer employees than before the pandemic struck, and with around five million people employed but still on furlough, the labour market remains subdued.

“However, with the prospect of businesses reopening, there was a marked rise in job vacancies in March, especially in sectors such as hospitality.”

Minister for Employment Mims Davies said: “Another drop in unemployment, vacancies on the rise, and over half a million people joining payrolls in the last month is welcome news as we continue on our roadmap to recovery with key sectors of our economy reopening.

“This is still a challenging time, but right across the country our Plan for Jobs is helping people of all ages to get back on their feet and giving employers the confidence to recruit as we push to build back better.”

British Chambers of Commerce head of economics, Suren Thiru, said:  “The latest data confirms that the UK labour market remains subdued. While there was a marginal fall in the unemployment rate, the squeeze on activity from ongoing restrictions helped drive a decline in payroll employment in March.

“Unemployment remains on course to peak towards the end of 2021, once the furlough scheme expires and those who stopped job hunting during the pandemic look to return to the workforce as restrictions ease.

“Although the furlough scheme will limit the peak in job losses, the longer-term structural unemployment caused by Covid-19, particularly among young people, may mean that the road back to pre-pandemic levels lags behind the wider economic recovery.

“Further action will be needed to support the labour market when the furlough scheme ends, including supporting businesses to recruit and retain staff through a temporary cut in employer national insurance contributions.”

Matthew Percival, the Confederation of British Industry's director of people and skills, said: “Evidence continues to mount that it is young people's jobs that have been hardest hit by lockdowns. Support for jobs and training will be vital to making the UK’s economic recovery inclusive. Government should confirm that the extra lockdown at the beginning of the year means that the Kickstart Scheme will remain open for longer to allow businesses the time to deliver opportunities for young people.”