Highest vacancy rates in nursing and care, as unemployment grows
Another 3,603 people claimed Universal Credit (UC) across Kent & Medway in Jan 2021, meaning that 17% of the working population aged between 16 – 64 is now unemployed in the County.
As a number 17% represents 160,844 individuals claiming UC in February (latest data). As of Nov 2020, the latest data avaliable shows 106,424 households across all Kent Councils, were claiming UC which is equivalent to 16% of all Kent households claiming UC.
Universal Credit is a payment to help with living costs for those on a low income or who are out of work. Universal Credit provides a single payment per household based upon the circumstances of the household. Support for housing costs, children and childcare costs are integrated into Universal Credit.
Universal Credit can be claimed even if the claimant is still employed but they have a low income. Many people have seen their income reduce due to coronavirus measures. For example, if a person has been furloughed and their income has fallen to 80% of their usual income, they may be able to make a claim for Universal Credit.
Those in the hospitality and arts; entertainment and leisure; and retail and wholesale (as well as in construction) sectors have taken advantage of the furlough scheme and some large Kent businesses with exposure to the travel and tourism sector (such as P&O and Saga) have announced major redundancies.
Three issues are worth highlighting in relation to the employment impacts on different sectors:
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First, some of the most severely impacted sectors in Kent, such as retail and hospitality have traditionally been relatively labour-intensive and have tended to be important sources of lower wage and entry-level jobs. These lower-income workers have been disproportionately impacted by unemployment and temporary furlough arrangements, and that reduced entry-level jobs continues to disproportionately impact younger people joining the labour market.
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Second, the pandemic will lead to some structural, as well as temporary, changes in labour demand: for example, the crisis has accelerated trends towards online retailing and home working that were already emerging, driven by technology. Although the picture is still uncertain, it’s likely that the shape of the economy (and the jobs required) will be somewhat different post pandemic. This will be further advanced in some sectors by a continued shift towards automation, which may itself be a means of building resilience to health-related shocks.
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Third, despite the poor general climate for employment and a fall in advertised vacancies, from 48,000 unique job vacancies in July 2020 to 29,000 in Feb 2021. The highest number were in nursing, care, driving, teaching and cleaning, with (unsurprisingly) a continued decline in catering and hospitality. So while overall, the current crisis is a crisis of demand, there are still supply-side challenges in enabling workers to change sectors and occupations.
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