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One million jobs available as economy re-opens

Shoppers are seen walking past social distancing signs following the outbreak of the coronavirus
Shoppers are seen walking past social distancing signs following the outbreak of the coronavirus

Almost one million jobs are available across the country as businesses reopen from the lockdown and need to take on more staff, according to recruiters.

There are 990,000 jobs adverts, including 92,000 new postings in the past week, as bars, restaurants and hotels are among those recruiting heavily ahead of tomorrow’s reopening, the Recruitment and Employment Confederation said. Building sites, and barbers and hairdressers also among those hiring.

Over June as a whole there were 1.3m jobs available, up by 35,000 from May, though still short of the 1.8m in March before the lockdown struck.

It raises hopes that a large share of the estimated 8m workers on furlough will get back in to work as their employers ramp up activity again.

“The effects of easing the lockdown are clearly reflected in jobs postings data. While many hospitality and construction firms will start by taking staff off furlough, the market for new jobs in these sectors is starting to improve from the record lows of the past few months,” said Neil Carberry, the REC’s chief executive.

“Our recovery can only pick up pace as consumer and business confidence returns.”

That confidence is starting to improve.

GFK’s consumer index rose to minus 27, its strongest score since the pandemic took hold as the survey found households getting less gloomy about the nation’s economic prospects and their own financial situation. This is translating into a greater willingness to make big purchases.

Retailers have already seen some resurgence in activity after non-essential shops were allowed to reopen from mid-June, according to the Office for National Statistics, with half of Britain’s workforce now travelling to work once more, and early indicators showing the housing market is also gearing up again.

Retail parks now have around 70pc of their usual visitor numbers, up from a low of around 10pc at Easter.

Shopping centres are up to almost half the number of customers seen at the same time last year, while high streets are struggling most with under 40pc of their usual footfall.

Lockdown: what we can and cannot do
Lockdown: what we can and cannot do

Businesses are steadily bringing back furloughed workers, the ONS said.

Just under one-quarter of their staff are now on furlough, down from 30pc a fortnight ago.

Typically they are returning to work, rather than being laid off.

Even the hardest-hit sectors are returning to life.

Almost one-fifth of businesses in accommodation and food re-started trading in the past fortnight after a break, while another one-in-10 expect to reopen in the coming two weeks as the sector reopens on 'Super Saturday'.

Similarly in arts, entertainment and recreation, around one-in-10 has just reopened with a similar share planning to do so imminently.

Economic Intelligence newsletter SUBSCRIBER (article)
Economic Intelligence newsletter SUBSCRIBER (article)

As the economy reopens, more staff are going back in to work - 49pc now travel to work daily, up from 36pc in late May.

Meanwhile the housing market also appears to be getting back on its feet.

The ONS tracks the number of new energy performance certificates issued, documents required for a property sale or change of use.

The number of new certificates generated plunged by three-quarters in April, but is now down by only one-quarter from its pre-pandemic level, indicating activity is returning in the market.

However a separate survey from the Bank of England underlines the depth of the damage done to the economy by the lockdown recession, and the length of the recovery still to come.

Businesses expect sales will still take a coronavirus hit of around one-quarter in the third quarter of the year and one-sixth in the fourth quarter. The impact will linger into next year - sales are still expected to be down one-tenth in the opening three months of 2021 as a result of the pandemic.

That means employment is likely to be down by almost one-tenth early next year, with investment down almost one-fifth.

All industries surveyed anticipate to suffer for some time to come, with the accommodation and food sector hardest hit. Hotels, pubs and restaurants think employment will still be down by around one-fifth into 2021.