On Tuesday 16th June, the UK Government reported that the number of people out of work and claiming work-related benefits jumped 23% to 2.8 million with coronavirus crisis forcing thousands of businesses to close.
The latest figures for May noted that the number of jobcentre claimants increased from 1.24 million in March illustrating a sharp 126% increase since the beginning of the lockdown. Minister for Employment Mims Davies MP said,
“Today’s figures are starting to show the impact of Covid-19 on our economy, but our furlough scheme, grants, loans and tax cuts have protected thousands of businesses and millions of jobs, setting us up for recovery.
“Already our nationwide network of Work Coaches have moved in to support jobseekers across sectors and match them with employers who are recruiting. By responding to the needs of communities across the UK they will be at the heart of our revival and renewal, helping people find new roles and move forward with their lives.”
According to the ONS, Job vacancies also fell to their lowest level on record and inflation-adjusted pay fell in real terms for the first time in April since January 2018.
However, the unemployment rate remained steady at 3.9% in April, illustrating the cushioning effect of the government’s furlough scheme, which has protected more than 9m jobs. A steep rise in unemployment was averted in March and April after the government introduced a series of grants and subsidies, including the coronavirus job-retention scheme.
In a statement to The Guardian, Tej Parikh, chief economist at the Institute of Directors, said employers were expected to begin making thousands more people redundant as the furlough scheme was phased out between August and October.
