This report shows that employment has taken up to seven years to recover after previous recessions. Employment recovery may be slower this time with big employers like hospitality and retail facing ongoing social distancing and consumer confidence limits: in France and Germany footfall is still around 15% below pre-crisis levels.

While many jobs have returned, the situation may be worsened by the planned end of the Coronavirus Job Retention Scheme in October, which is still supporting up to 6.8 million jobs. The Office for Budget Responsibility’s projections assume that more than one million furloughed workers may not have jobs to return to, risking a second spike of unemployment.

Employment will grow as the economy reopens and adjusts, but on past experience not quickly enough. With sectors like retail and hospitality remaining constrained, the number of workers switching careers would need to be far higher than seen before to avoid further growth in unemployment.

The report calls for a three part plan to fill the jobs gap: 

  1. Invest to create jobs. Including 50,000 more jobs from accelerating public investment and 270,000 from a much-needed £7.6 billion boost to social care, childcare and adult learning;
  2. Stimulate job creation. Including up to 320,000 green jobs by investing £3 billion in home energy efficiency, and providing £1 billion to expand Kickstart placements to adults; and
  3. Protect existing jobs. Through a £4 billion wage support scheme, paying 20% of the wages of up to 500,000 workers in the hardest-hit sectors like retail and hospitality when the furlough scheme ends. 

The report also provides a detailed picture of how the jobs gap may vary across the country. It shows that areas with high unemployment before the crisis, like Blackpool, have been hardest hit. Areas like Swindon and Barking have seen lower rises in unemployment, but have higher proportions of workers furloughed meaning they risk larger rises in job loss in the autumn.

This puts the Government’s aim of ‘levelling up’ at risk. The report argues local government should play a leading role in promoting economic growth and matching those losing their jobs to new opportunities created. For example, many city centres may need to change their focus as footfall from commuters fails to fully return. Meanwhile, areas reliant on international trade may face further employment challenges in 2021, depending on the success of trade negotiations with the EU.

2 Tachwedd 2026

From writing off to reaching out? Government plans for young people on health-related benefits

Ahead of the publication of the Milburn Review, L&W’s deputy director Elizabeth Gerard sets out key considerations for the Government.

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29 Hydref 2026

Time to make the Youth Guarantee real: A promise and plan for every young person

Ahead of the publication of the Milburn Review, L&W’s chief executive Stephen Evans proposes five actions to reduce the number of young people not in education, employment or training.

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28 Hydref 2026

Responding to Autumn Budget 2026

Learning and Work Institute Chief Executive Stephen Evans responds to the Autumn Budget on 28 October 2026.

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20 Hydref 2026

Labour Market Briefing: October 2026

Our analysis of the ONS labour market statistics, released on the morning of 20 October 2026.

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20 Hydref 2026

Labour market dashboard

Every month, Learning and Work Institute produces detailed and timely analysis of the latest labour market statistics from ONS. Explore our interactive charts.

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20 Hydref 2026

Labour market stats response, October 2026

L&W’s chief executive Stephen Evans responds to the latest labour market data from ONS.

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30 Medi 2026

From appetite to opportunity

This report for The St Martin’s Group draws on a survey of more than 1,000 HR decision makers to examine employers’ plans to recruit young people, the routes they expect to use, the barriers they face, and the support they need.

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15 Medi 2026

Labour Market Briefing: September 2026

Our analysis of the ONS labour market statistics, released on the morning of 15 September 2026.

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15 Medi 2026

Cambridgeshire and Peterborough’s Youth Guarantee Trailblazer: Implementation and process evaluation

This report presents findings from L&W’s implementation and process evaluation of year one of Cambridgeshire and Peterborough Combined Authority’s Youth Guarantee Trailblazer.

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