WAGE WOES
730,000 Brits unemployed since March after another 114,000 workers lost jobs last month
UK unemployment since March rose to 730,000 after another 114,000 Brits lost their jobs last month.
The fall in employment between April and June is the largest quarterly drop since 2009, the Office for National Statistics (ONS) said.
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July’s numbers are based on a ‘flash estimate’ with 85 per cent of the usual data and could change.
The over-65s, the self-employed and part-time workers were especially badly hit.
Between April and June, the number of employed Brits fell by 220,000, compared to a drop of 251,000 workers between February to April in 2009.
The number of average hours worked also continued to fall, according to the ONS, reaching record lows both on the year and on the quarter.
Unemployment hasn't risen as much as feared because a large number of workers have been put on the government's furlough scheme, meaning they're still classed as employed.
Experts say the full effect on unemployment will be felt once the scheme ends in October.
Last week, the Bank of England predicted unemployment could hit 7.5 per cent due to the coronavirus crisis.
While last month, the Office for Budget Responsibility (OBR) 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.
It comes as Boris Johnson has today warned the UK economy faces more "bumpy months".
Speaking to reporters on a visit to Herefordshire, the Prime Minister said: "We always knew that this was going to be a very tough time for people.
"What we are going to have to do is to keep going with our plan to 'build, build, build' and build back better, and ensure that we make the colossal investments that we can now make in the UK economy to drive jobs and growth.
"Obviously what we want to see is a return to economic vitality and health. Some parts of the economy are undoubtedly showing great resilience but clearly there are going to be bumpy months ahead and a long, long way to go."
Meanwhile, the number of people claiming work-related benefits such as Universal Credit, including those on low incomes, was 2.7million.
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.
This figure has more than doubled since March - soaring 116.8 per cent - in a sign of the mounting jobs crisis.
The number of vacancies jumped 10 per cent in May to July at 370,000 from a record low in April to June.
In June alone, the number of Brits on payroll fell by 74,000 workers.
While in July, almost 60,000 workers faced redundancy just a day after Rishi Sunak's mini-Budget promised to focus on "jobs, jobs jobs".
Jonathan Athow, ONS' 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."
Jeremy Thomson Cook, chief economist at Equals, added: "The latest UK unemployment release confirms two things; the true level of those out of work has been very effectively lowered by the government’s furlough scheme.
"But, more importantly when thinking about a recovery, the level of employment has continued to fall as those who have lost their jobs through the pandemic have not yet found their next role."
"Unfortunately, the end of the furlough scheme will present a cliff-edge, statistically and economically, for those currently relying on government support to make up their wages.
"Longer-term government stimulus to create jobs is needed to ensure the gap between the end of the furlough scheme and a rise in employment is not larger than it needs to be."
Mims Davies, minister for employment, said: "Today’s figures show more of the impact the virus is having on both our economy and labour market meaning many people will be understandably concerned about the future.
"This why we’ve set out our plan for jobs, to protect, create and support jobs as we build back our economy."
She said the government has already protected more than 9.5million jobs with the furlough scheme, supported more than two million self-employed people and paid out billions in loans and grants to thousands of businesses.
The Eat Out to Help Out scheme also supports thousands of jobs in the hospitality sector, and the stamp duty cut has led to a surge in house sales, she added.
Next month, the government plans to launch the £2billion kickstart scheme to create new jobs for young people, double the number of work coaches and boost the DWP Flexible Support Fund by £150million.
Mims added: "We are determined to build back stronger and support people as we move into recovery."
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