Job Retention Scheme is working, but employers need more notice of government decisions
RSM says businesses need more notice to be able to respond to government decisions.
Commenting on today’s ONS and HMRC data, Earnings and Employment from Pay as You Earn, George Bull, tax consultant, RSM, said: ‘The ONS data shows the crucial importance of the Job Retention Scheme, and the effect on jobs of the period of uncertainty preceding the extension of the furlough scheme. The lesson for the chancellor here is that, as the pandemic progresses, he must give businesses more notice of his future decisions so that employers can act with greater confidence.
‘While every job loss is a personal tragedy, the fact that the number of payroll employees fell by only 2.7% compared with November 2019 illustrates the broad effectiveness of the chancellor’s measures. Nevertheless, with 819,000 fewer people in employment, the UK needs to be exceptionally careful that, no matter how successful the vaccination campaign, we do not tip over into a period of high long-term unemployment.
‘The 4.6% increase in median pay between November 2019 and November 2020 reflects both the job losses in low-paid sectors such as arts, entertainment, recreation, accommodation and food services, along with the continuing trend that employees’ pay has generally grown fastest towards the lower end of the pay distribution.’