Hunt’s budget aims to push people back to work just as the jobs market weakens

Commuters make their way to work in London. The UK labour force is almost half a million smaller than it was before the Covid crisis. Photograph: Andy Rain/EPA

The last set of labour market figures before the budget provides a stark illustration of the challenges facing Jeremy Hunt, though they are different from those usually associated with a stagnant economy.

There was a time when the absence of growth for an entire year would have led to sharply rising unemployment. During the recessions of the early 1980s and 90s the jobless total was more than 3 million while the jobless rate rose to more than 10% – three times its current level of 3.7%. Increasing labour supply was not a priority for the Thatcher and Major governments of the time.