Unemployment hits 813,000 Brits since start of pandemic with 56,000 losing jobs last month
AROUND 813,000 jobs have been lost since the start of the pandemic as a further 56,000 were out of work last month, according to new figures.
It means the total number of workers who don't have a job now stands at 1.67million, reports the Office for National Statistics (ONS).
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But overall, the rate of unemployment dropped from 5% in February, to 4.9% compared to the previous quarter.
It's the second month in a row that unemployment has fallen.
The drop were unexpected as the UK spent the majority of the quarter in a coronavirus lockdown, where millions of non-essential businesses were forced to close.
In total, the Covid crisis has decimated 813,000 jobs since the start of the first lockdown in March 2020.
Darren Morgan, director of economic statistics at the ONS, said despite signs of hope, the labour market "remains subdued".
Number of job vacancies on the rise
Promisingly, the number of job vacancies has jumped to 607,000 in January to March this year as businesses looked to reopen after lockdown.
In February, non-essential retail, such as clothes and homeware shops, were told they could reopen from April 12.
Pubs and restaurants have been allowed to welcome back customers too, but only for outdoor table service.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
Despite this, there are still 22.7% fewer job openings than this time last year.
But Jack Kennedy, UK economist at job site Indeed, said the surge in spring hirings is already showing signs of slowing down.
He said: "The number of vacancies posted on Indeed soared in March, but has since plateaued and now stands 15% below its pre-crisis level."
"While reopening sectors like retail, hospitality and food continue to ramp up their hiring, there are signs of caution elsewhere that suggest many employers may be taking a wait-and-see approach."
Furlough 'skews' the numbers
Around 5million workers are still on furlough, a figure that's reflected in the ONS' rate of employment data.
Under the scheme, workers receive 80% of their monthly salaries, up to £2,500, from the Government if Covid restrictions have closed their workplace.
The scheme has been extended multiple times and is now set last until September this year.
Danni Hewson, finance analyst at investment firm AJ Bell, said: "It’s important to remember these figures are still skewed by the hundreds of thousands of workers supported by the Government’s furlough scheme.
"Whilst the hope is the majority of those will be reintegrated back into the workforce, hope doesn’t pay the bills.
"Until the temporary ends, the reality can only be weighed and considered."
Derrick Dunne from Beaufort Investment added: "Only when the furlough scheme eventually ends will the numbers reflect the full force of this pandemic."
Under 25s hit the hardest
Of the 813,000 people out of work last month, 436,000 (53.7%) were under the age of 25.
Personal finance expert at Hargreaves Lansdown, Sarah Coles, said: "The blow is particularly harsh for young people, who made up more than half of these losses.
"This is a function of the concentration of younger workers in hotels and restaurants that have been knocked sideways by the pandemic.
"However, this will come as no comfort at all to them.
"Job losses at this stage in life, with alternatives so thin on the ground, can make it particularly difficult for those with little experience to get back into the workplace."
The ONS estimates that around 7.3 people per thousand employees were made redundant between December 2020 and February 2021.
This is down from the record high of 14.2 people per thousands employees witnessed in the previous quarter, between September to November 2020.
For men, the unemployment rate was 5.2% and 4.6% for women, both down around 1% compared to last year.
But the number of men out of work dropped by 0.2% compared to the last quarter, while there was no change for women.
Minister for Employment Mims Davies said the slight fall in unemployment was "welcome news".
She added: “This is still a challenging time, but right across the country our Plan for Jobs is helping people of all ages to get back on their feet and giving employers the confidence to recruit as we push to build back better.”
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Around half of UK workers have suffered pay cuts in real terms due to the coronavirus crisis, according to research.
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But promisingly, millions of young workers will get a pay rise of £345 from this month, as the National Living Wage increases.
The national living wage is different to the real living wage, which is a voluntary amount that companies choose to pay their workers.