A new report from the Treasury has confirmed that despite the UK suffering its biggest annual fall in output in 300 years, the labour market has been surprisingly steady when compared to other turbulent times in history.
The analysis, which used data from Understanding Society’s main survey and its COVID-19 study, found the Coronavirus Job Retention Scheme (CJRS) has helped to protect jobs during the pandemic and stabilised employment.
More key findings
• In the years prior to the COVID-19 pandemic, real median household income growth was greater for households in the lower- and middle-income quintiles than in the highest income quintile.
• The UK labour market was performing strongly, with earnings growth strongest amongst the lowest earners and the employment rate reaching a record high.
• During COVID-19, The UK unemployment rate has remained lower than that of comparable groups of countries.
• Taken together, the CJRS, other government policies such as the Self Employment Income Support Scheme (SEISS) and increases to welfare benefits have protected those with the lowest incomes the most.
