Job Vacancies Rise - Is this due to Covid or Brexit? Gary on LBC with Darren Adam

Gary Stevenson discusses the surge in job vacancies during the second quarter of the year, explaining that April through June saw a spike as many hospitality venues reopened after lockdowns. He notes that unemployment is edging down, and that the high vacancy rate may reflect post-pandemic dynamics like employers needing new staff after furlough. However, he cautions against drawing sweeping conclusions from these figures, as the context of the data is atypical. The interview highlights how Covid-19 massively distorted labor statistics, with sectors such as hospitality driving vacancies as they hire to meet renewed demand. The conversation also weighs the role of Brexit, noting that reduced inbound labor from the EU could exacerbate staffing shortages in certain industries. Stevenson argues the numbers are not necessarily a clear signal of broad improvement for jobseekers and emphasizes the need to consider other economic indicators like wage growth and inflation. He connects policy choices, such as furlough exits and the government’s Covid-era support, to potential future unemployment trends and inequality, signaling that the recovery is nuanced and uneven across regions and income groups. The discussion ends on a cautious note, praising government intervention that protected workers during the crisis while warning of ongoing risks, particularly around housing affordability and wage pressure as the economy rebalances.

Topics · economy · labour_market · uk_politics · covid19 · housing