The labor crisis scares UK workers who are moving towards a period of high unemployment that could lead to mass personal debt.
Between March and June, the number of UK workers on payroll fell and 649,000 people lost thei jobs. The numbers came according to the Office for National Statistics. It means vacancies in the UK between April to June 2020 are the lowest level since the survey began in April to June 2001.
Covid, unemployment with 649,000 people losing jobs
The numbers are 23% lower than the previous record low in April to June 2009. However the claimant has doubled since March and rising 112,2% or by 1,4 million. It is a sign of a job crisis and economic crisis for the country.
Jonathan Athow, deputy national statistician at the Office for National Statistics (ONS), said: “As the pandemic took hold, the labour market weakened markedly, but that rate of decline slowed into June, though this is before recent reports of job losses. There are now almost two-thirds of a million fewer employees on the payroll than before the lockdown, according to the latest tax data.”
He also added that the Labour Force Survey shows a small fall in employment but large numbers of people who work with no hours and without getting paid. Because of that, there are more out-of-work people who are not looking for a job than before the pandemic.
Decline in employment in England
Sara Willcocks from national poverty charity Turn2us, said: “It is now clear that we are heading for an intense period of high unemployment. Without intervention this will lead to mass personal debt, rising homelessness and increasing numbers of families going hungry.”
She added that the government has a furlough scheme to help people to have jobs in pandemic then urge DWP to increase social security spending, eliminate the five week wait for Universal Credit and ensure that benefit conditionality is flexible to claimant’s needs and opportunities in their area.
Shadow chancellor Anneliese Dodds told “I think this is a very concerning time because we could see that being worsened by changes going ahead with the furlough scheme.”
Whilst Jack Kenney, the UK economies said there are few signs of a thunderclap in hiring and the chance of a V-shaped recovery appears very slim. Since the outbreak of Covid-19, there has been a short and fast decline in UK job postings and early indications suggest it will be a long and slow climb back to normal levels.