After the series of Brexit turmoil, it was effortless to expect a drastic downfall in the employment rate in the UK. This is what usually happens when an economy goes through a significant change. But establishing a taboo, UK is in fact on the highest rate of employment in the last 44 years. Since 1975, it has not reached to the level that exists currently. Isn’t that amazing and odd at the same time? Besides, it creates a curiosity to know how an economy despite going through such uncertainty can provide bread and butter to its people.
To make something happen, many small and significant factors work together. For this, indeed, several factors are responsible. Let us explore them and unfold the facts that hide in the rationality of this reality.
Companies hired in BULK but…
Sounds contradictory, but companies increased the hiring intending to add 222,000 in the workforce of the UK. It is a significant and promising number to show and also good news for job seekers. But analysts also cautioned that this rise is in the three last months that only touches the start of the worsening period of Brexit. However, the current situation, which has seen the incidents of March 29, is sure to leave its impact on the job market. The circumstances are now ready to take a big twist and not only the job market, but every industry should work on back up plans. The individuals should also stay on their toes to manage any possible mess of money.
The other side of the coin
It is natural to misinterpret that companies are supporting the economy that is true, but there is a truth behind it. Companies hired the workforce because it is cheaper than investing in productivity-boosting technology. This creates the way for the weaker growth in the coming years.
The Bank of England has mentioned that the workers are easy to hire and fire. On the other hand, significant investments are costly to reverse. All these are the consequences of Brexit because due to prevalent uncertainties there is a sharp fall in investments. The firms want to compensate that by hiring workers to get the jobs done and meet their demands.
Need for a back up to tackle the possibility of unemployment in the coming time
Well, it is always good to be ready for the tough times. Doing the job that is in hand with best possible efforts is good. When the companies overcome the Brexit uncertainty, they are sure to work on the latter part of ‘HIRE & FIRE’ game. In short, they may fire the people. In that case, the priority is to find a new job, but if that does not happen on time, then at least financial support should be there. Experts always favour the habit of savings and investing in things that make money faster. For instance, the compound interest. Also, there should be a good knowledge of the other options, for example, if there are any loans for unemployed, then it is good to have some information about them. Only the short-term loans are available for the unemployed and interest rates are tend to go high as the loan company takes a significant risk. Anything can become a last-minute saviour.
An older workforce is still in the job
Another important reason for the rise in employment is the change in the pension age policy. The result is, fewer people between the age of 60 and 65 years have retired. The number of people in the age of retirement has dropped to the lowest level of the last 25 years. This is a big factor that is sure to affect the economy in the coming years. Seniors are happy due to increased years of job. But on the other side, it can negatively impact the employment rates because when the older ones are in action, the young workforce gets lesser job opportunities. It is contradictory for both the economy and for society. The elderly may need to stay in the job for better survival and to meet their ends meet. On the other hand, the young ones may face frustration and miss the right job opportunity at the right time.
After Theresa May faced the unprecedented parliamentary defeat of the modern era on her EU withdrawal plan, prevalent ambiguity is sure to exist. The high employment rate is a good thing, but the reality is not always visible. Sometimes it wears the mask of myth and comes forward with no sign of hidden facts. One has to explore every aspect of a situation and keep exploring until the ground of rationality doesn’t come into the picture. The high rate of employment in the UK is just like the truth in disguise of hallucination that makes the world feel amazed. But the fact is difficult to hide, and they come out from any loophole. Let us see, how many more twists are yet to add in the destiny of UK.