The UK unemployment rate has fallen as lockdown restrictions have eased and segments of the economy have re-opened, the Office for National Statistics (ONS) revealed.
The non-ministerial department disclosed that the unemployment rate averaged 4.9 per cent over the three months to February, a modest drop from 5 per cent the previous month.
Five million also remained employed, but still on furlough.
Jon Hudson, manager of the Premier Miton UK Growth fund, commented: “At 4.9 per cent, the unemployment rate has decreased on a quarterly basis for the first time since the pandemic broke, despite the UK being in national lockdown throughout the period.
“It highlights the success of the government’s furlough scheme and suggests the economy is well placed to bounce back once restrictions are lifted.”
The ONS said the job market was “broadly stable”, with positive signs that the recovery is building and a noticeable increase in hiring over the last few weeks. There were nearly 16 per cent more vacancies in March 2021 compared with February.
Number of vacancies in the UK, seasonally adjusted
Source: ONS
However, there were 22.7 per cent fewer vacancies than the same period in 2020, showing that the job market still has a long way to go.
Derrick Dunne, chief executive of Beaufort Investment, added: “Today’s data from the ONS paints a mixed picture of UK unemployment but does little to allay concerns about the long-term impact of Covid-19.
“The rate of unemployment has, in the words of the ONS, stabilised, but there were still 813,000 fewer jobs than this time last year, and only when the furlough scheme eventually ends will the numbers reflect the full force of this pandemic.
“It is true that there are reasons to be optimistic,” said Dunne. “As restrictions ease and the economy cautiously reopens its doors, the boom in demand should certainly help to protect some jobs, especially in retail and hospitality.”