Since the start of coronavirus, UK employment dropped by 220,000 between April and June, the total since March amounts to 730,000.
As the number of coronavirus cases around the world continues to grow, the ONS confirms shocking figures: in UK 730,000 employees lost their jobs since March 2020.
Largest employment fall in a decade
Three quarters of a million jobs were lost since the start of coronavirus, ONS figures show. The shocking number represents a worrying sign, as it would be the largest fall since last decade and economists warn it is only going to get worst. The number of employees on payrolls fell by 730,000 since March 2020, while pay also dropped down to 1,2% and regular pay down 0,2%. The ONS also showed a rise in zero-hours contracts, increasing by 156,000. The unemployment rate remains the same, sticking to a 3,9% which, as economists explain, it is because people were mostly inactive, in furlough, rather than jobless.
UK unemployment rate remains at 3.9% in three months to June, but doesn’t include those on furlough. ONS says ‘approximately 7.5 million were temporarily away from work in June 2020’. The number of employees in the UK on payrolls is now down 730,000 compared with March 2020. pic.twitter.com/00Rb5MZcny
— Ben Thompson (@BBCBenThompson) August 11, 2020
The number of hours worked also fell by a record 18%, the lowest level since 1994. Youngest and oldest employees seem to be the most affected by this crisis. Jonathan Athow, Office for National Statistics deputy national statistician for economic statistics, said: “Figures from our main survey show there has been a rise in people without a job and not looking for one, though wanting to work. In addition, there are still a large number of people who say they are working no hours and getting zero pay.
“The falls in employment are greatest among the youngest and oldest workers, along with those in lower-skilled jobs.
“Vacancies numbers began to recover in July, especially in small businesses and sectors such as hospitality, but demand for workers remains depressed.”
According to the figures, people are changing their status from self-employed to employed despite remaining in the same job. Also, the number of non-UK EU workers dropped by 284,000, the lowest since 2015.
Economists warn crisis will get worst
Tony Wilson, director of the Institute for Employment Studies tweeted:
HMRC data shows a 730k fall in paid employees over same period. Monthly fall June-July was pretty big (114k) after v small fall previous month.
Appears that around half of this fall is people who still say (or think) they have a job to go back to – but not being paid thru JRS 3/ pic.twitter.com/TCoPvHbMAt
— Tony Wilson (@tonywilsonIES) August 11, 2020
The UK’s labor market crisis is deepening, with signs of much higher jobless rates ahead & wage deflation. Pay excluding bonuses fell 0.2% in Q2 from a year earlier – the first negative reading for basic pay since records began in 2001. https://t.co/xPun22q6yB
— Lisa Abramowicz (@lisaabramowicz1) August 11, 2020
Dan Hanson, Bloomberg economist, says UK unemployment rate will probably be doubled by the end of the year. He affirmed: “A sharp fall in employment and the subdued level of vacancies both suggest the labour market has taken a significant hit in recent months.
“We expect the true cost to be revealed once the government’s furlough scheme ends in October. Our baseline forecast sees the jobless rate peak at 8.5% at year-end.”