Job MarketNews

Job gap could take years to close, study finds

A UK job gap, caused largely by the Covid-19 pandemic, could take years to close, a new study by the learning and work institute (LWI) suggests. 

The report showcased that employment rates fell more rapidly than in previous recessions. 

 In addition to this HMRC data revealed a 730,000 fall in payroll employment in the four months since March (when UK lockdown laws were first imposed). The LWI suggests that this plummet in employment could create a UK jobs gap of up to more than one million jobs. 

The report said: “The nature of the current crisis means that, alongside employment support, we need to understand the jobs gap and plan how to fill it. High unemployment areas, city centers and tourism destinations face different job gaps.”

It continued: “Some of the highest increases in claimant unemployment have been in parts of the country where unemployment was already highest.” 

“Use of the furlough scheme has been widespread, with around one in three eligible jobs furloughed at some point.”

The study also revealed that London saw some of the biggest increases in unemployment claims and substantial use of the furlough scheme. 

A factor which is likely to reflect the high number of jobs in lockdown sectors such as hospitality, and the large number of people able to work from home which continues to affect demand for city-center retail and hospitality. 

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