Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made on the potential effect of the Job Retention Scheme on (a) vacancies and (b) recruitment in the UK labour market.

The Coronavirus Job Retention Scheme (CJRS) aims to support jobs, reduce the risk of permanent business closures (supporting those that had temporarily ceased or reduced trading) and reduce the risk of large losses in incomes, through wage support to furloughed employees.

The number of employees on the CJRS has continued to fall as restrictions have eased. According to provisional data from HMRC, 3.4m employments remained on the CJRS at the end of April from 675,000 employers, down from 4.3m employments at the end of March from almost 765,000 employers. This fall was accounted for by a fall in the number of employments on the CJRS on a full time basis; from 2.9m at the end of March to 2.0m at the end of April.

According to the latest Office for National Statistics (ONS) data, vacancies rose by 49,000 on the quarter to stand at 657,000 in the three months to April, marking the eighth consecutive month of quarterly growth. Timelier online job advert data from Adzuna suggest that postings were 27 per cent above February 2020 levels at the end of May. According to early estimates from HMRC’s Real-Time Information (RTI), the number of paid employees increased by 97,000 in April, marking the fifth consecutive month of growth.