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OECD: UK's employment rate might not recover until the end of 2023

OECD: UK's employment rate might not recover until the end of 2023
OECD: UK's employment rate might not recover until the end of 2023

An Organization for Economic Cooperation and Development (OECD) analysis has reportedly shown that UK's job recovery is likely to be delayed until almost the end of 2023. Thousands are still struggling to find employment as the government continues to phase out the furlough scheme it introduced at the start of the pandemic.

According to the OECD, a recent increase in the employment rate will reverse over the following six months before regaining pace in 2022 and climbing back to its March 2020 levels of 75.5 percent.

While several businesses have claimed that they are having difficulty filling job openings and have urged ministers to address a shortfall of skilled workers, the OECD stated that terminating the furlough plan in September will compel many businesses affected by pandemic-related limitations to start layoffs.

To ensure a more steady increase in job prospects, UK leaders should consider more adaptable support for individuals and businesses that continue to suffer due to the coronavirus pandemic, claimed the Paris-based organization through its report analyzing the employment outlook in all 38 OECD member nations.

OECD also stated the total number of hours worked in the United Kingdom decreased by 25% in 2020, and it was still 10% lower in March 2021 than before the COVID-19 outbreak.

The furlough scheme supported approximately 32% of the nation’s employees in April and May of 2020. It was the fifth-highest amount of support provided among OECD countries.

As economies implement their recovery strategies in coming weeks, it is vital to keep helping the most vulnerable families and jobs that are still viable, while also providing the proper incentives for job creation and resumption.

The OECD also supports recent concerns that express that the withdrawal of the subsidies will further make wealth and income inequalities wider and greatly weaken job prospects for several low-skilled workers.

Source credit: https://www.theguardian.com/business/2021/jul/07/uk-jobs-recovery-could-stutter-until-end-of-2023-says-oecd

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.