Boost in job vacancies but Covid delays will knock confidence - experts

New job figures released indicate a welcome boost in job vacancies, including in accommodation and food services, but the delay to the easing of Covid restrictions will certainly knock businesses ' brewing confidence, experts have warned today.

According to figures released by the Office for National Statistics (ONS), the number of job vacancies between March to May 2021 was 758,000, only 27,000 below its pre-pandemic levels recorded in January to March 2020.

Between March and May 2021, accommodation and food services vacancies grew by a staggering 265.5 per cent.

Figures also showed a slight bump to the employment rate in the West Midlands by 0.3 per cent from November to January 2021, to 74.2 per cent.

The regional unemployment rate fell by 0.3 per cent to 5.7 per cent and the inactivity rate remained at 21.2 per cent.

Nationally, employment rose by 0.2 per cent to 75.2 per cent, unemployment fell by 0.3 per cent to 4.7 per cent and inactivity was unchanged at 21.0 per cent.

Average pay, after allowing for inflation, also grew at 4.4 per cent between February and April of this year.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said that the figures reflect positivity building among firms, but key sectors such as live events, hospitality and travel still remain severely impacted by Covid regulations.

She said: “These figures reflect the positivity building among Greater Birmingham businesses. As restrictions are gradually eased, we are seeing rapid growth in reopened sectors, and a steep increase in vacancies available for those seeking work.

“However, the announcement that phase four of the Government 's roadmap will not go ahead from 21 June, and that Birmingham has been designated as a Strengthened Support Area to tackle a rise in Delta variant cases, will certainly have knocked the business community 's brewing confidence.

“Much of the live events, hospitality and travel sectors and their supply chains remain severely impacted by current regulations and will require urgent Government intervention to save jobs and weather the ongoing pandemic.

“We will be closely monitoring the impact of Strengthened Support measures on Birmingham and working with Birmingham City Council to ensure that those businesses which are able to trade have everything they need to continue doing so while keeping staff, clients and customers safe.

“The Chamber 's latest Quarterly Business Report, launching on 24 June will provide a snapshot of the local economy, the challenges business are facing and the road to recovery for the region in light of these latest announcements. I highly encourage interested readers to (virtually) attend. ”

Saira Demmer, chief executive of SF Recruitment, added that the positive employment figures indicated business resilience and investment, despite the pandemic.

She said: “Great news from this month with the employment market returning to close to pre-pandemic levels, signalling that despite the ongoing threat of the virus and new variants, businesses are resilient and pressing ahead with investment into people.

“Continued upward salary pressure is going to make employees more sticky and we expect to see growth in unfilled vacancies over the remainder of this year. ”

Register to attend the Quarterly Business Report Q2 Briefing Breakfast: The Road to Recovery in Greater Birmingham, here.