Will the omicron variant further decimate the job market?

Britain and continental Europe’s labour markets are at a critical point. The number of UK job vacancies has continued to rise significantly and in October, reached the highest number since records began 20 years ago.

Despite this, 69 per cent of companies across Europe are currently reporting talent shortages. This vacancy paradox is occurring at a time when more than 140 million full-time jobs have been lost across the world, and more than 3 million under 25s are currently unemployed. This reflects skill shortages which are already having adverse consequences on the productivity and competitiveness of European enterprises.

According to a recent World Employment and Social Outlook report by the UN, “all countries have suffered a sharp deterioration in employment and national income” during the pandemic, which has aggravated existing inequalities, particularly among young people, and risks long-term scarring effects on workers and enterprises. This has created an “unparalleled labour market crisis” that will affect the employment market for years to come.