William Eichler 12 August 2021

Labour market recovery uneven, think tank warns

Labour market recovery uneven, think tank warns image

Tourism-reliant areas, such as Cornwall, have seen job numbers pick up over the summer, but the jobs recovery is uneven and has a long way to go, according to a new anaylsis.

A new report from the think tank Resolution Foundation has found that the initial pandemic labour market shock and the recovery has varied according to the region.

Employee numbers are back to pre-pandemic form in many parts of the country. However, in some regions (most notably, London) the jobs recovery has a long way to go.

Titled Levelling Up and Down Britain: How the labour market recovery varies across the country, the report found that tourism-reliant areas, such as Cornwall, Gwynedd and the Causeway Coast and Glens, have seen job numbers pick up in recent months. In contrast, employee numbers in cities including Edinburgh and London continue to lag behind their pre-pandemic levels.

Resolution Foundation identifies two reasons for this. First, due to COVID-19, British holidays have been popular this summer, while home-working remains commonplace. People are not commuting to London and Cardiff as much now.

Second, higher-wage areas, like Westminster, Camden and Aberdeen, are also the places where the jobs recovery has been weakest, suggesting that residents are also not spending to the same extent as they were pre-COVID.

‘Whether or not this uneven recovery endures is an open question,’ the report concluded.

‘But a structural shift to more home-working or less commuting could have a lasting impact on the geography of the UK labour market, and a living standards effect to boot.’

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director Finance and Resources

Westminster City Council
£168,135 to £230,985
Westminster City Council is no ordinary local authority. City of Westminster, London (Greater)
Recuriter: Westminster City Council

Assistant Director – Regulatory Services

Derbyshire County Council
£71,202 - £77,495 per annum - plus benefits package
Derbyshire is a county of proud communities, beautiful landscapes and ambitious growth. Derbyshire
Recuriter: Derbyshire County Council

Director of Law and Governance

Southwark Council
Up to £150,000
Southwark is a vibrant, diverse London borough with a strong community identity. Southwark, London (Greater)
Recuriter: Southwark Council

Director of Organisational Strategy and Digital

Wiltshire Council
£123,211 - £131,206
Wiltshire is a county like no other, stunning countryside, vibrant market towns and deep-rooted heritage, it offers an exceptional quality of life. Wiltshire
Recuriter: Wiltshire Council

Chief Finance Officer (S151)

Wiltshire Council
£146,576 - £156,434
Wiltshire is a county like no other, stunning countryside, vibrant market towns and deep-rooted heritage, it offers an exceptional quality of life. Wiltshire
Recuriter: Wiltshire Council
Linkedin Banner