Job Vacancies Falling
The latest figures from the Office for National Statistics (ONS) show that the number of job vacancies has fallen by 10,000 from 1,134,000 in February 2023, to 1,124,000 in March 2023.
Vacancies Down
The new figure of 1,124,000 is 194,000 down from the record peak of 1,318,000 reached a year ago in March 2022.
2022 Peak
The surge in job vacancies during 2021/22 meant that In May last year, the number of job vacancies exceeded the number of people to fill them for the very first time. That is, the number of job vacancies exceeded the number of unemployed, with the ONS report stating that “for the first time since records began, there are fewer unemployed people than job vacancies.”
As recently as November 2022, the number of job vacancies still exceeded the number of people available to fill them by 1000, with job vacancies at 1,225,000, compared to the number of unemployed of 1,224,000.
Unemployment Level Now Exceeds Number Of Job Vacancies
However, in recent months, the position has reversed. With the number of job vacancies now at 1,124,000 in March 2023, and with unemployment now at 1,253,000, the number of unemployed now exceeds the number of job vacancies by 129,000.
Accordingly, since November 2022, there has been distinct deterioration in the jobs market. Nevertheless, it should be emphasised that the number of job vacancies remains at historically high levels. In February 2020, for instance, immediately prior to the start of the Covid-19 pandemic, the number of job vacancies stood at 810,000. That is 314,000 less than there are now. Moreover, with unemployment at 1,290,000 back in February 2020, unemployment exceeded the number of job vacancies by 480,000. That is 351,000 more than at present
Over 50's
One of the reasons why job vacancies remain at historically high levels is because of the large numbers of over 50's who left the labour market during the Covid-19 pandemic due to retirement, ill-health, and other reasons. The Chancellor of the Exchequer, Jeremy Hunt, has looked to address that issue with a number of announcements in the 2023 Budget (dubbed the ‘back to work Budget’), including 'returnerships' and 'mid-life MOT's'.
Commenting upon the fall in the number of job vacancies, the chairman of recruitment firm Reed, James Reed, told the BBC Today programme on BBC Radio 4: "It's not cause to panic....Actually there are over 300,000 more vacancies than there were this time pre-pandemic, three years ago, so the labour market is pretty buoyant still which is surprising many people."
44% Of 55-64 year-olds Plan To Semi-Retire Before Reaching 65
On the subject of the over 50's retiring early, a new report from Aviva has found that 44% of those aged 55 - 64 plan to move into semi-retirement prior to the age of 65 (i.e. part-time working).
Semi-Retirement
Moreover, 91% of those who had already reduced their hours state that they are much happier since doing so.
Furthermore, 59% of those currently aged 18 - 34 years of age and 61% of those aged 35-44 also plan on semi-retiring before the age of 65.
Reaction
Commenting upon the findings, the managing director for wealth and advice at Aviva, Michele Golunska, stated: "In a climate where longer working lives are becoming the norm, semi-retirement is a chance to experience the ‘best of both’ which can benefit both employees and employers. Retaining connection to their workplace is an appealing option for many people who are still working towards their financial goals or are simply not ready to stop working . It also provides an opportunity for employers to continue to harness the knowledge and expertise of more experienced staff for longer."
Golunska added: "We know retirement can look very different for everyone so we want to encourage conversations about retirement long before it happens.....As people live longer, investing time in ourselves and considering every option available in later life is the best way to ensure we have the retirement we aspire to. Starting to think and plan further ahead is a small step that can make a big, positive difference in the long-term."
