Omicron variant poses threat to labour market recovery - Chamber

Businesses ' rising optimism and positive signs of recovery within the jobs market could be jeopardised as the Omicron variant continues to spread, business leaders said.

New labour market figures reveal that the UK experienced a third consecutive quarter of jobs growth, helping to reduce the jobs deficit from pre-pandemic levels.

Between August and October 2021, the employment rate in the West Midlands rose by 0.4 per cent to 74.6 per cent, with the unemployment rate falling by 0.3 per cent to 4.8 per cent.

Early estimates for November 2021 indicate that the number of payrolled employees rose by 4.8 per cent compared with November 2020, a rise of 1,353,000 employees.

The number of job vacancies in September to November 2021 continued to rise to a new record high of 1,219,000, an increase of 434,500 from its pre-Covid levels, with 13 of the 18 industry sectors showing record highs.

The number of payrolled employees was also up by 1.5 per cent since February 2020, a rise of 424,000.

Emily Stubbs (pictured), policy and projects manager, Greater Birmingham Chambers of Commerce said: “Just as many businesses began to regain their footing following the earlier events of the coronavirus pandemic, the emergence of the Omicron variant now threatens signs of economic recovery.

“The data released today shows positive signs of labour market recovery over the autumn. Notably, it indicates that the end of the furlough scheme has not resulted in the job losses previously feared - though some employees who were made redundant may have still been working out their notice into November and we could see a dip in the total employees on payroll in the coming months.

“However, this data does not yet reflect the arrival of Omicron in the UK, nor the speed at which the Omicron variant is now spreading across the country, and the subsequent increase in restrictive measures.

“These latest events come at a critical time for many of the hardest-hit sectors of our economy, such as hospitality, entertainment and aviation, which will have been relying on strong festive trade to bring in profits after an incredibly difficult year and a half.

“The Chambers have published an updated action plan based on feedback we 've received from local firms on the support they will need to keep their business moving over the coming weeks and months in light of the new announcements.

“We will also be discussing the latest economic developments and their impact on Greater Birmingham Businesses at the launch of our Q4 Quarterly Business Report briefing, which I highly encourage interested readers to attend. ”

Click here to read the GBCC 's updated Action Plan on the support needed by local businesses to keep business moving in light of recent announcements.

Click here to register for the GBCC 's Quarterly Business Report Q4 Briefing: Innovation in Greater Birmingham, taking place on 19 January.