Economics – Employment in London has fallen sharply
15 June 2021Experimental ONS / HMRC research, based on information from HMRC, gives a “real time” view of what is happening in the UK labour market.
Experimental ONS / HMRC research, based on information from HMRC, gives a “real time” view of what is happening in the UK labour market.
In the latest edition, there is reason for optimism: the number of employees in the UK is rising from the low point reached in November 2020 and monthly pay is also rising (although provisional data for April suggests that pay growth may have faltered).
On the downside, however, the data also makes it clear that employment for young adults has fallen sharply over the last year – this supports IGD’s understanding that young adults have been hit hardest by the consequences of Covid-19.
One reason may be that young adults are most likely to work in the industries and activities most affected by “lockdown” measures.
It is also clear that employment in London in particular has fallen, probably due to reduced commuting to London workplaces.
If this persists post-Covid, it may mean that the way London is used by workers, shoppers and diners shifts permanently, requiring a response from food businesses. IGD discusses this idea in a new presentation on Retail Analysis (subscription required).
(Note: In the ONS method, employees on temporary “furlough” still count as being employed).