JOB CUTS
Unemployment jumps 649,000 since lockdown with 74,000 extra jobs claimed by coronavirus last month
UNEMPLOYMENT has risen by 649,000 workers since lockdown with the coronavirus crisis claiming an 74,000 extra jobs last month.
The number of paid employees fell by 1.9 per cent year on year in June to 28.4million, and by 0.3 per cent compared with the previous month, the Office for National Statistics (ONS) said.
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The number of people claiming work-related benefits such as Universal Credit, including those on low incomes, was 2.6million.
This figure has more than doubled since March - soaring 112.2 per cent or by 1.4 million - in a sign of the mounting jobs crisis.
With 9.4 million people on furlough classed as employed, the true coronavirus impact on jobs is only expected to show after the scheme ends in October.
It comes after the Office for Budget Responsibility (OBR) this week predicted that unemployment is set to hit 12 per cent this year as the furlough scheme winds down.
This would affect 3million people, up from 1.3million in 2019.
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Job losses since June 2020
MANY firms have announced job cuts since June as a result of the coronavirus lockdown. These include:
- Shoe chain Aldo collapsed into administration with five stores permanently closed
- Victoria's Secret plunged into administration, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in , putting 82 stores at risk
- British Gas owners cuts 5,000 jobs, over half of which will be in management
- Airbus announces 1,700 job losses. It expects cuts to be made by summer 2021
- TM Lewin says it will close all 66 of its UK shops, putting 600 jobs at risk
- Harveys Furniture goes into administration resulting in 240 immdiate job losses and puts another 1,000 at risk
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- EasyJet says it plans to close hubs at Stansted, Southend and Newcastle, putting 4,500 jobs at risk
- John Lewis is reported to be planning to cut jobs and permanently close department stores
- Harrods has said it is consulting on cutting 680 jobs
- Virgin Money, which owns Clydesdale and Yorkshire Bank, will cut 300 jobs
- Topshop owner Arcadia has announced plans to cut 500 office staff
- Royal Mail is expected to cut 2,000 jobs as a result of coronavirus
In just one day in July, more than 12,000 jobs were put at risk by firms including Upper Crust, easyJet and Airbus.
For the Brits who are employed, wage growth has slowed and median monthly pay fell by 0.9 per cent to £1,795 in May compared to the same month last year, according to the ONS.
The figures show that vacancies fell 463,000 between March and May to a record low of 333,000 as companies froze hiring in the face of the pandemic.
Jonathan Athow, deputy national statistician at 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.
"The Labour Force Survey is showing only a small fall in employment, but shows a large number of people who report working no hours and getting no pay."
He added: "There are now far more out-of-work people who are not looking for a job than before the pandemic."
What to do if you're facing redundancy
LOSING your job can be incredibly stressful, we explain what you should keep in mind.
- Know your rights: If you’re faced with redundancy, your employer must treat you fairly and act in accordance with your redundancy rights. That includes making sure you’re consulted, and giving you a notice period.
- Redundancy pay: You are also entitled to redundancy pay if you have been with the company for two years or more. The amount you are compensated will vary depending on your age, and how long you have been with the company.
- Review your finances: If you do receive a redundancy payment, don’t get tempted to spend it straight away. It might take time to find a new job, so it's worth making a budget for yourself.
- Search for work: Once you've sorted your finances, you can then start to look for a new job. You may need to update your CV - we round up eight tips from recruitment experts and other little-known schemes to help you find a job.
Sara Willcocks, head of communications at 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.
"Whether you are losing your job on a London high-street, or in a tourist town like Blackpool, it is vital that you are not left to sink into poverty.
"The government introduced the furlough scheme to help millions of people keep their jobs at the height of the pandemic; they must now double down to protect people through the second phase of this crisis.
"We urge the 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."
Mims Davies, minister for employment, said: "We know that people are worried about their livelihoods which is why we’ve put in place a Plan for Jobs.
"A crucial part of that is doubling the number of frontline work coaches so that every jobseeker gets support to find work as well as launching the Kickstart scheme to create hundreds of thousands of new, fully subsidised jobs for young people across the country."
Business Secretary Alok Sharma also defended the government's £160billion support schemes this morning and told BBC Breakfast: "If we hadn’t provided this support, we would’ve been in a far worse position.
"The cost of inaction would’ve been far greater than the cost of action.
He added: "Anyone who’s facing unemployment, it’s going to be an incredibly worrying time.
"We want to reach out and support everyone through our Jobcentre networks.
"What we need to do now is to continue open up the economy in a careful and phased way."
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Employees face the first wave of redundancies ahead of changes to the Coronavirus Jobs Retention Scheme (CJRS) in August, which sees employers chip in to pay for National Insurance and pension contributions for furloughed staff.
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From September, the government's contribution will fall to 70 per cent of wages up to a cap of £2,187.50 a month.
In the mini-Budget last week, Chancellor Rishi Sunak announced a £1,000 bonus per furloughed employee that businesses re-employ.
Chancellor Rishi Sunak outlines new £1,000 jobs retention bonus for employers who bring back furloughed workers
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