1 in 4 unemployed in January as most recent lockdown hits

The CSO reported that the Covid-19 adjusted unemployment rate rose to 25.0% in January, up from 19.4% in December. These figures are an estimate based on the Live Register and Covid-19 related claims. The main unemployment rate was unchanged from December at 5.8% in January on a seasonally-adjusted basis, up from 5.1% twelve months ago.

Jack Kennedy, an economist at global job site Indeed, commented on the latest CSO data:

Today’s startling figures show the return to national lockdown has applied the brakes to the economy once more. With the country facing several more months under tight restrictions, the rapid roll-out of the vaccination programme is now vital, both for public health and for the health of the economy.

On a macro level, it will be interesting to see how many of the changes Covid has brought are here to stay. We’ve seen significant behavioural change affect industries like retail, with high street shops suffering from lack of footfall and ultimately closing. It’s possible we will see the job profile in this industry transform as it moves from bricks and mortar to more online selling. We already saw a rise in warehouse and delivery jobs last year, it now looks like this could be less of a temporary trend and more of a cultural shift.

Brexit may also bring lasting change to the shape of the labour market. Industries highly sensitive to supply chain issues will likely continue to transform and adapt in order to circumvent these challenges, bringing new opportunities for the labour market.