As we continue to emerge from lockdown, it’s refreshing to read some very positive news in the press, particularly in The Times this morning.
The paper highlights that, according to the Bank of England, Britain is on course for its strongest year of economic growth since the Second World War as households spend their lockdown savings and businesses step up investment. Here are the key highlights:
- Having contracted by 9.8% last year in the worst recession since 1709, The Bank of England’s 2021 GDP growth forecast is 7.25%, which would be the fastest annual growth since 1941, when Britain was re-arming during World War Two.
- GDP growth is predicted to match pre-crisis levels by December, faster than comparative forecasts for most European nations.
- The Times reports on the monthly Report on Jobs by KPMG and REC (Recruitment and Employment Confederation), which highlighted that permanent hires rose in April at the fastest rate since records began in 1997 and advertised vacancies grew more rapidly than at any point since 1998.
- The extension of furlough to September has saved circa 750,000 jobs and means unemployment is predicted to peak at 5.5%, down from the Bank’s forecast of 7.75% three months ago, the paper reports.
We are certainly seeing employers respond to this positivity. With this report adding that recruitment activity is rebounding at the fastest pace in over 20 years, our own market analysis and increase in HR jobs, also Payroll and Reward jobs highlight this encouraging trend. Interim HR jobs are also increasing. Our recent Market Insight from Commerce & Industry and UK Wide teams and analysis from our Financial and Professional Services divisions certainly back this up.
Long may it continue.