Looking at the latest unemployment figures, the UK labor market is in pretty good shape. The number of people added to the salary is increasing, and jobs are increasing. Annual revenue growth surged to 4.7%.
Another way is that the number of unemployed people increases with the overlap rate, while the number of employees decreases.
The confusing picture is the results of the National Statistical Office, which evaluates the number of unemployed, the number of claimants, the labor force survey and the salary data submitted to the HMRC in various ways. All are calculated in different ways and some are more timely than others.
Some of the stories are relatively easy to understand. The big jump in average income growth is the result of job losses focused on low wages since the onset of the pandemic. The average of those who remain at work has risen the average of those with higher incomes.
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It’s harder to assess what’s going on in your job. The number of HMRC benefits has increased over the course of two months, and the December increase could have been lowered by easing restrictions after the four-week blockade in November in the UK, but again imposed strict restrictions in January.
It’s hard to imagine why businesses are adding salaries in these situations, but there are a few reasons why they might have done so. One is that companies have become savvy to operations through closure. Another is that the January blockade has encouraged more employees to be hired by companies that did well, especially during the crisis, with promising news about the vaccine. Finally, the government quickly announced an extension of the dormant plan, an action that may have persuaded employers that they could hold on until a better time came.
But one thing almost all analysts and commentators agree on is that this year, a period of crisis in the labor market will come as wage subsidies are phased out. Then a clearer picture will appear.
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