The Impact of COVID-19 on the UK Labour Market: Analysis (2020-2021)

This report examines the state of the UK labor market in 2020 and 2021, focusing on the significant impact of the COVID-19 pandemic. It highlights the increase in unemployment rates due to business shutdowns and subsequent staff reductions, referencing data from the Office for National Statistics (ONS). The report also touches upon the economic consequences, including decreased inflation and increased deflation, and mentions the government's efforts to mitigate the impact through strategies like the furlough scheme. The conclusion emphasizes the need for effective strategies to address the rising unemployment rate in the UK, providing a concise overview of the challenges and responses during this period.

Labour market in the UK in
2020/2021

INTRODUCTION
 Microeconomics is the concept that the countries study in order to deal with the market
of labour, its prices and production.
 In the economics the best way to measure the economy of the country is through
employment measures.
 The measurement of employment is about the number of citizens of the country in paid
work and the person those who have job but are temporarily on break.

What happened to the unemployment rate in the UK
during the pandemic and why?
 The global pandemic Covid-19 has been a major cause for
the increased unemployment rate of the UK.
 The businesses were completely shut down for the long
period of time causing huge loss for the employers which
resulted into the cut off large number of staff by many big
and small organisations.
 As per the most recent research of the Office for National
Statistics (ONS) the unemployment rate for January 2021 to
March 2021 was 4.8%.

CONCLUSION
 It is concluded from above report that the pandemic has caused a huge impact on the
employment in the UK and suddenly raised the bars of unemployment rate.
 This is due to the deceased inflation and increased defalcation.
 Thus, the UK economist and government is planning effective strategies and schemes
like furlough to mitigate the impact of decreasing unemployment in UK.

REFERENCES
 Unemployment rate: How many people are out of work?,2021, [online].
Available through: < https://www.bbc.com/news/business-52660591>
 Covid-19 consequences: inflation or deflation, 2020, [online]. Available
through: <
https://www.economicsonline.co.uk/managing_the_economy/covid-19-c
onsequences-inflation-or-deflation.html/
>